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Ernst & Young Can’t Believe Its Luck

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Re: Getting off scot-free for telling Lehman Brothers that it could just write all of those things off. So it’s pinching itself, basically appealing the miraculous verdict so that no one can take it away.

The accounting firm late last month sought confirmation of an April decision by an arbitration council, which ruled Ernst & Young wasn't liable for the so-called Repo 105 accounting maneuver that Lehman used to shift assets off its books. The New York Attorney General's office had sued the accounting firm over the practice, which allowed Lehman to temporarily lower its leverage in 2008 while enabling the bank to present itself as financially stronger than it really was.

Ernst & Young Seeks Affirmation of Lehman Accounting Decision [WSJ]


Local Man Can’t Believe Hank Greenberg Might Win This AIG Case

At least one ex-Skadden attorney isn't sure why this case wasn't "laughed out of court," despite the fact that it might end up working out for ole Greenberg.