Did PwC Keep Ernst & Young's Lehman Secrets?



I wrote Lehman Bankruptcy Won't Be Pretty on August 30, 2009 based on a Reuters story that said PwC was trying to unravel the Lehman bankruptcy for its clients:


Administrators of the London arm of Lehman Brothers said the claims it is handling against the collapsed Wall Street bank could total as much as $100 billion.

PriceWaterhouseCoopers, which is working with over 100 companies, mostly in the UK but also in continental Europe, said on Sunday: "We're dealing with a large number of entities and therefore the claims could be as much as $100 billion.

"These claims are exceptionally complex and we anticipate a large amount of further work in dealing with (them)."

A significant amount of the claims arose as a result of guarantees issued by the parent company to its subsidiaries, the administrator said.

PwC said it had worked with administrators in other affiliates to understand Lehman's accounting system so a standard approach to the reconciliation of inter company balances could be agreed. [emphasis mine]

At the time, I wished PwC luck but looking back, I'm wondering what sort of interesting Lehman accounting they came across while trying to understand its implosion.

See anything, you know, funny while you guys were in there, PwC? Just curious.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

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