Lee Vs Lehman Brothers

721 Words 3 Pages
According to Jennings (2012) Mr. Lee’s was employed by Lehman Brother on May 18, 2008. The Chief Finical Officer and Chief Risk Officer of Lehman Brothers had employed Mr. Lee as an analyst since and he controlled global balance-sheet and legal-entity accounting (Jennings, 2012, p.289). According to Jennings (2012) Mr. Lee provided a brief synopsis on the alarms he has regarded Lehman Brothers. Mr. Lee describes that the Lehman Brothers had “tens of billions of dollars” on the organizations balance sheet that could not be corroborated (Jennings, 2012, p.289). The Lehman Brother hired Mr. Lee as an analyst in 1994 because he was capable of developing a rational business plan. At least this is what Mr. Lee assumed, but at some level the only …show more content…
Lee emphasized on how the Lehman’s use of Repo 105, which was used to move about $50 billion in debt off the Lehman Brothers book (Jennings, 2012, p.289-290). However, Jennings (2012) explain that the firm’s auditor Ernst & Young, described Mr. Lee’s memorandum as “pretty ugly,” and determined that his claims were irrelevant and baseless which Mr. Lee was dismissed from Lehman Brothers (p.290). Shortly after Mr. Lee was let go Lehman declared bankruptcy in September 2008. According to Jennings (2012) Mr. Lee was correct, and the bankruptcy report demonstrates the top executives at Lehman were aware of both the level of risk exposure as well as the accounting practices used to conceal that exposure (Jennings, 2012, …show more content…
There are different selections when it comes to sensing mechanisms for example, executives of many organizations choose to use a complaints or suggestion box in an area where all employees have access, hotline or open discussions forum, according to Jennings, (2012) “the most important sensing mechanism comes from this advice: get out of your office” (p.291). In 2007, Jennings (2012) stated that the internal papers show that employees were disturbed with the debt securities from the bank and laboring (p291). According to one e-mail an employee, who is discussing the fact that the bank’s books, complains, “OK still have this vomit” (Jennings, 2012,

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