WASHINGTON – A former executive at Lehman Brothers said Tuesday that he was suddenly fired in 2008 after raising concerns about the now-bankrupt firm’s accounting practices, including “Repo 105” transactions.
Matthew Lee, a former senior vice president who had been at the firm for 14 years, said his peers shared his concerns about Lehman’s accounting but said management did not respond.
“On multiple occasions, I attempted to bring these issues to the attention of Lehman Brothers’ executive management, and on one occasion to the attention of Lehman’s outside auditors. Within days of first raising issues, I was terminated,” Lee said in testimony prepared for delivery before the House Financial Services Committee.
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Last month a court-appointed examiner said the firm used a technique known as “Repo 105” to temporarily remove some assets from Lehman’s books, obscuring its full financial picture.