• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

No sympathy for the auditors in Lehman case

By
Colin Barr
Colin Barr
Down Arrow Button Icon
By
Colin Barr
Colin Barr
Down Arrow Button Icon
December 21, 2010, 11:26 AM ET

“Auditors who can’t say no” sounds like a support group in the making. But one embattled audit firm isn’t getting a terribly sympathetic hearing.

So says a quickie survey conducted Monday by the Argyle Executive Forum. The electronic poll of 498 members finds that nearly half of respondents — 48% — believe New York should move forward on civil fraud charges against Ernst & Young over its role in the collapse of Lehman Brothers.



I'll show you my audit trail

That compares with 27% who say the state shouldn’t press charges against E&Y, a deep-pocketed outfit that is one of the Big 4 accounting firms, and 24% who just don’t know what to make of the whole mess.

The survey comes on the heels of a report Monday that Ernst & Young could soon find itself hauled into court over its well documented failure to ask Dick Fuld (right)  just what he and his minions were trying to accomplish with some of their aggressive accounting.

Key among those maneuvers is the notorious Repo 105, in which Lehman and some other Wall Street firms booked loans as sales at the end of quarters in order to make their leverage levels look less irresponsible.

As feckless as E&Y seems to have been, passing the buck at every turn while claiming improbably that there is no reason to believe Wall Street ever tried to mislead anyone, there is also no doubting the utter absurdity of Lehman. This ends up working out in E&Y’s favor, at least to my reading of the response to the second question in the Argyle poll.

Some 39% of respondents say they believe the firm played a “material role” in the collapse of Lehman, which filed in September 2008 for the biggest-ever U.S. bankruptcy. Almost 36% said they believe Ernst & Young didn’t play a material role, however, while 25% say they have no earthly clue either way.

This last finding suggests that perhaps the nation isn’t completely spellbound by this story, in spite of the considerable dramatic possibilities. You have the greedy Lehmanites and the spineless auditors cashing so many big checks that they very nearly blow up the economy. Then, just when some well muscled foreigner should be talking about “payback time,” everyone sort of dozes off till two years later a publicity-seeking politician (is there any other kind?) decides it’s time to dig the whole thing up again. Call it SFAS 140: This time it’s personal.

As ridiculous as it all seems, it is about time the auditors got held to a standard higher than “there are too many damn lawsuits as it is.” KPMG has paid $70 million to settle its liabilities in two big subprime blowups, those of New Century and Countrywide, and you’d have to say given the size of those debacles that was probably not a terrible bargain for the firm. It will be worth watching how much E&Y has to pony up to call off the Cuomo express.

The whole issue raised enough eyebrows that Argyle, a New York-based group that says it brings some 25,000 business leaders together for “strategic collaboration and business development,” chose to take the membership’s temperature on it. A spokesman says the firm conducts such polls “a few times a year, based on what the membership is focused on.”

Previous poll subjects, he said, include Tiger Woods and Goldman Sachs (GS). The executives who join Argyle may well fashion themselves “senior operating leaders, board members, investment managers and policy makers.” But hey, they like a little rubbernecking just as much as the next guy.

About the Author
By Colin Barr
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

BlackRock private credit fund’s valuations are probed by DOJ
InvestingDepartment of Justice
BlackRock private credit fund’s valuations are probed by DOJ
By Olivia Fishlow, Ava Benny-Morrison and BloombergMay 17, 2026
48 minutes ago
Ukraine brings the war to Moscow with one its largest drone attacks on the capital, adding to the ‘darkening cloud of anxiety over Russia’
EuropeRussia
Ukraine brings the war to Moscow with one its largest drone attacks on the capital, adding to the ‘darkening cloud of anxiety over Russia’
By Samya Kullab and The Associated PressMay 17, 2026
1 hour ago
Drone strike sparks fire at UAE nuclear power plant, the first time it’s been attacked since the Iran war started
EnergyNuclear Energy
Drone strike sparks fire at UAE nuclear power plant, the first time it’s been attacked since the Iran war started
By Jon Gambrell, Samy Magdy and The Associated PressMay 17, 2026
1 hour ago
This community college student is America’s entrant in the Olympics of skilled trades. ‘I always wanted to be the first female to do something’
Future of Workthe future of work
This community college student is America’s entrant in the Olympics of skilled trades. ‘I always wanted to be the first female to do something’
By Mike Householder and The Associated PressMay 17, 2026
2 hours ago
Some states blast utilities for ‘blatant corporate greed’ as profits rise while consumers revolt against AI-fueled electric bills
EnergyUtilities
Some states blast utilities for ‘blatant corporate greed’ as profits rise while consumers revolt against AI-fueled electric bills
By Marc Levy and The Associated PressMay 17, 2026
2 hours ago
 Sen. Bill Cassidy, who voted to convict Trump in Jan. 6 impeachment, loses primary as president retains grip on GOP — ‘that’s what you get’
PoliticsRepublican Party
 Sen. Bill Cassidy, who voted to convict Trump in Jan. 6 impeachment, loses primary as president retains grip on GOP — ‘that’s what you get’
By Thomas Beaumont, Jack Brook, Stephen Smith and The Associated PressMay 17, 2026
2 hours ago

Most Popular

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
AI
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
By Jake AngeloMay 16, 2026
1 day ago
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
Politics
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
By Jason MaMay 16, 2026
18 hours ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
5 days ago
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
Innovation
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
By Jason MaMay 16, 2026
24 hours ago
‘You’re not a hero, you’re a liability’: Shark Tank’s Kevin O’Leary warns Gen Z founders to stop glorifying hustle culture
Future of Work
‘You’re not a hero, you’re a liability’: Shark Tank’s Kevin O’Leary warns Gen Z founders to stop glorifying hustle culture
By Jacqueline MunisMay 16, 2026
1 day ago
Oil markets could be a month away from the moment of truth. Brace for a 'non-linear' price spike and panic buying, analysts warn
Energy
Oil markets could be a month away from the moment of truth. Brace for a 'non-linear' price spike and panic buying, analysts warn
By Jason MaMay 16, 2026
21 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.