E&Y defends itself against US court report

Partners at Ernst & Young (E&Y) have criticised the US court commissioned report out earlier this month on their role as auditor of Lehman Brothers. In a letter to clients, the accounting giant criticised claims in the report that E&Y was aware of the “Repo 105” transactions that were allegedly used to shift $50bn (£33.2bn) worth of debt off its balance sheet. Lehman’s bankruptcy was caused by a collapse in its liquidity......It was not caused by accounting issues or disclosure issues,” said the letter.