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Gasparino: SEC May Be Forced To Do Something About This Whole Lehman Thing

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It's not that they want to, as it would go against everything the Commission stands for (incompetence, letting frauds run rampant), not to mention seriously cut in on everyone's porn surfing time. It's just that, (no) thanks to the infernal examiner's report, they might have, or risk looking worse than they already do.**

People at the SEC say that they are now facing “tremendous pressure” to bring a civil case involving the Lehman matter in the aftermath of the report, issued last month by the court-appointed examiner of the firm’s bankruptcy, Anton Valukas, said one person who deals with the SEC on a regular basis.

It’s unclear if the SEC can muster the necessary proof to show that top executives like former CEO Richard Fuld or the firm’s outside auditor Ernst & Young intentionally misled investors about the health of Lehman’s balance sheet in the months before it filed for bankruptcy in mid-September 2008, according to people close to the probe. Lehman’s bankruptcy filing was a key ingredient to the 2008 financial meltdown, which led to a massive bailout of the financial system and later a severe recession that is just now appearing to end. But these same people say that the pressure — from an outraged public and Congressional leaders — over the findings of the report has caused the SEC to expedite its inquiry, and has put pressure on the commission to file civil charges. It’s unclear when any charges might be filed by the SEC, but people close to the inquiry say the SEC believes it does bring one, it must do so “very soon,” possibly within a few months given a combination of the outrage over the report’s findings and that Lehman’s bankruptcy is going on two years old.

SEC Probe Of Lehman Picking Up Steam [Fox Business]

**Which would be quite the accomplishment and one also being considered worth going after.