Fox Business Reports That The New York State Attorney General Is Investigating Lehman Brothers' Bankruptcy

FOX Business Network (FBN) Senior Correspondent Charlie Gasparino reports that while “the SEC and U.S. Justice Department are unlikely to bring charges” against Lehman Brothers “New York State Attorney General Eric Schneiderman is ramping up his investigation of the Lehman Brothers bankruptcy.” Excerpts from the report are below, courtesy of Fox Business Network.

On the New York Attorney General's investigation of the Lehman Brothers collapse:

“The SEC and U.S. Justice Department are unlikely to bring charges, but the New York State Attorney General Eric Schneiderman is ramping up his investigation of the Lehman Brothers bankruptcy. He has brought a case against Lehman's auditor Ernst & Young. He is calling further witnesses to ask them about the role senior Lehman executives in the firm's demise. Don't discount the New York Attorney General's office.”

On the Attorney General's investigation focusing on Repo 105:

“These people say the office is preparing to take testimony from witnesses about how top executives managed the firm's finances, including their use of a controversial accounting technique known as Repo 105 in the months prior to the bankruptcy filing…attorneys for witnesses who have already given testimony to the state AG's office in the Ernst and Young case say their clients are being called back to provide more information, and the focus of the state AG has shifted more toward what senior Lehman executives did during those months leading up to the firm's collapse, says one person with direct knowledge of the matter.”