3 Fed'l Grand Juries Probe Lehman Bros.
Three grand jury investigations have been launched against Lehman Brothers Holdings Inc., in the wake of the investment bank’s bankruptcy last month.
The probes, launched “by New York U.S. attorneys in Brooklyn and Manhattan as well as in Newark, New Jersey. They are focusing in part on Lehman’s role in the $330 billion auction rate securities market and possible crimes associated with its $6 billion June stock issue, according to a person familiar with the case,” reports Bloomberg.
Nationally, the FBI is looking into the operations of 26 companies after a global economic crisis that Lehman’s collapse helped trigger, the news agency writes. Although the Bloomberg article doesn’t focus on any such investigation of Lehman Brothers, prior reports have said that the FBI is probing the investment bank as well as other major institutions whose troubles have helped exacerbate the economic turmoil.
As discussed in an earlier ABAJournal.com post, the U.S. attorneys in New York and New Jersey are adding lawyers to their staffs to help pursue these and other investigations.
Related coverage:
Reuters: “FBI said to probe Fannie, Freddie, Lehman, AIG”
Associated Press: “FBI probing bailout firms”
ABAJournal.com: “WaMu is Being Investigated by FBI”
ABAJournal.com: “U.S. Lawmaker Suggests Special Counsel Probe of Wall Street Operations”
ABAJournal.com: “Lehman Brothers and a UBS Executive Investigated in Auction-Rate Probes”
