NYT: Investigators Said to Take Closer Look at Lehman

[Eugene]

Source: New York Times

Investigators Said to Take Closer Look at Lehman

By BEN WHITE
Published: October 17, 2008

Federal prosecutors from three jurisdictions have
stepped up their investigations into the collapse
of the investment bank Lehman Brothers, issuing at
least a dozen subpoenas including one to the chief
executive, Richard S. Fuld Jr., people close to
the matter said Friday.

Federal prosecutors in Brooklyn, Manhattan and New
Jersey are all examining events leading to Lehman’s
collapse and its subsequent bankruptcy filing,
these people said.

One area of focus for New Jersey prosecutors is
whether Mr. Fuld or other Lehman executives made
misleading statements about the bank’s condition
to investors who took part in a $6 billion infusion
of capital announced by Lehman on June 9, one
person close to the matter said. The new capital
came as Lehman disclosed a $2.8 billion third-
quarter loss that sent its shares plunging.

The New Jersey Division of Investment, which put
money into the capital raising, has received a
subpoena, the person said. William Clark, director
of the division, did not return a call seeking
comment.

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Read more: http://www.nytimes.com/2008/10/18/business/18lehman.html?hp