Kevin Reed, Accountancy Age, Thursday 16 September 2010 at 09:41:00

Window dressing accounting transactions should have been more rigorouslylooked into by Lehmans' board, according to its investigator Anton Valukas

The collapse of Lehmans might have been averted if its board asked morequestions about accounting treatments that added "window dressing" to the firm'squarterly financial statements, according to the investigator looking at thecompany.

Anton Valukas, the bankruptcy examiner for Lehmans, told a New York CountyLawyers Association panel that director should have questioned why transactionsknown as Repo 105s were used to remove assets and liabilities off the investmentbank's balance sheet, reported Reuters.

"Questions about window dressing and transactions whose purpose is windowdressing should be asked," said Valukas.

"There's no evidence Lehman personnel lied to the board.

"Basic questions were not being asked by the board about things such asoff-balance-sheet transactions."

Further reading:

PwCset to appeal Lehmans court ruling

Dorepos have a future?

USinsolvency actions could have UK reach