The Lehman report: Beancounters in a Bind

In the 2,200-page report on the Lehman Brothers’ downfall by its court-appointed bankruptcy examiner, it paints a detailed picture of Lehman's ex-boss, Dick Fuid, and the executives around him. Lehman’s former leaders are not the only ones facing the blame. Some of its counterparty banks are also taking heat for changing the terms of their collateral demands.  One specific firm is Ernst & Young for failing to “question and challenge improper or inadequate disclosures."  Lehman is unlikely to be an isolated case because according to the article, “the guards are in bed with the prisoners.”