Reuters Insider - Inside the News: Ernst & Young Sued by N.Y. on Lehman Bros
13/06/2016 10:59
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Source: Thomson Reuters
Description: Ernst & Young is being sued by the New York
attorney general and is being accused of helping
to hide financial risks at Lehman Brothers before
the Wall Street firm's 2008 collapse.
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Short Link: http://reut.rs/13rmK2b
Transcript (May be auto-generated)
Let's go Inside the News at noon. Accounting firm Ernst & Young is being sued by
the New York State Attorney General. The accounting firm is being accused of
helping to hide financial risks at Lehman Brothers before the Wall Street firm
collapse. Ernst & Young was Lehman's outside auditor from 2001 until the
investment bank filed for bankruptcy in September 2008. AIG shares are up more
than 2% after sources told Reuters the US is likely to sell shares in the firm
in two big stock offerings next year. US will then sell any remaining stock in
AIG in 2012. The sale would mark a major step in getting the government out of
its investment in AIG. The company received $182.3 billion in bailout money
during the financial crisis. The Fed today bought another $7.8 billion of
treasuries, bringing its running total under QE2 to more than $149 billion.
Reuters Credit Analyst Ed Rombach joins us with more. So Ed, how's the balance
sheet looking now? Well Dan, for the amount that they've been purchased, that
they purchased just since November 12, $145 billion plus, it's running at a
mark-to-market loss of about $2.7 billion to $2.8 billion. That's a big, that's
a lot better than we were looking last week when rates were higher. But what
we're seeing is a familiar pattern, you know, where traders go after the
targeted treasury securities that the Fed's going to buy. It's called a pump and
dump operation, right? They buy the treasuries, they sell them to the Fed, the
market sells off a little bit after that. So that mark-to-market loss that we're
looking at now might be a little bit higher by the end of the day. Okay and we
are seeing treasuries near their low point of the day with about a seven-tick
loss on the 10-year note.
So Reuters Breakingviews' James Pethokoukis says expect a political pushback
after the FCC votes on controversial net neutrality rules. The regulator would
ban high-speed Internet service providers from blocking or slowing lawful
content. They would also allow phone and cable companies to charge consumers
based on their usage. Pethokoukis says purists will not be pleased by the
balance. You can get your live stream on the vote on the Reuters Insider
platform. And it's not just metals that are seeing reality in the commodity
space. ICE Arabica Coffee futures are surging to a 13.5-year peak. Analysts say
prices are rising to tight supply of high-quality beans. Elsewhere, Vietnam's
coffee harvest is ending a month earlier than usual, partly because of high
production cost. At 1PM, we'll have more analysis on the AIG share sale by the
US government and coming up at 1:15, Reuters Quantitative Analyst Mike Tarsala
will tell you what Thomson Reuters trend intensity indicator says about how much
further the S&P 500 has to go. I'm Dan Burns and this is Reuters Insider