Charges Against Lehman Brothers Executives "Imminent" - Gasparino
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According to FOX Business Network’s Charles Gasparino, sources close to the matter say that the Securities and Exchange Commission may bring charges against former top executives at Lehman Brothers as early as this week.
The charges that Gasaprino calls "imminent" as Lehman has ramped up the payment for legal fees for former CFO Erin Callan, the other former CFO Ian Lowitt, former president Joe Gregory and former CEO Dick Fuld. All are executive targets of material interest of the SEC.
"It has ramped up dramatically over the last three months," Gasparino said. “For the first year and a half since this became a matter of interest for the SEC, they spent about 35 million dollars in attorney fees. In the last two and half months they have spent 35 million. So this case, according to sources and that sort of analysis; everybody is in agreement this case is coming to a head."
Gasparino said that there are other being investigated by the SEC, but their identities are unknown some of these individuals may be making deals with the agency.
"At least part of it is focused on the March 2008 capital raise where they went out and did a preferred deal," Gasparino added. "Erin Callan made some very positive bullish statements about Lehman. About how the nature of its finances would mean that it did not need more capital and three months later Lehman Brothers needed more capital and then came the decline of the firm."
Lehman Brothers filed for bankruptcy in September 2008 at the onset of the economic recession.
The charges that Gasaprino calls "imminent" as Lehman has ramped up the payment for legal fees for former CFO Erin Callan, the other former CFO Ian Lowitt, former president Joe Gregory and former CEO Dick Fuld. All are executive targets of material interest of the SEC.
"It has ramped up dramatically over the last three months," Gasparino said. “For the first year and a half since this became a matter of interest for the SEC, they spent about 35 million dollars in attorney fees. In the last two and half months they have spent 35 million. So this case, according to sources and that sort of analysis; everybody is in agreement this case is coming to a head."
Gasparino said that there are other being investigated by the SEC, but their identities are unknown some of these individuals may be making deals with the agency.
"At least part of it is focused on the March 2008 capital raise where they went out and did a preferred deal," Gasparino added. "Erin Callan made some very positive bullish statements about Lehman. About how the nature of its finances would mean that it did not need more capital and three months later Lehman Brothers needed more capital and then came the decline of the firm."
Lehman Brothers filed for bankruptcy in September 2008 at the onset of the economic recession.
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