Charlie Gasparino Reporting That SEC Waited Too Long In Lehman Probe

Fox Business Network's Charlie Gasparino is reporting that key witnesses are saying that their memories are hazy about events that occurred years ago, in conjunction with the SEC's probe into Lehman Brothers. Mid-September will mark the two-year anniversary of the Wall Street investment bank's bankruptcy, which was the largest in history and accelerated the financial crisis. Several key witnesses believe that the SEC waited too long to look into the collapse of Lehman. According to the FBN report, the SEC only began to ramp up their efforts in March, after court-appointed bankruptcy examiner Anton Valukas found evidence that top Lehman executives used accounting gimmicks and manipulated the firm's finances prior to its downfall. In particular, the report was critical of CEO Dick Fuld, former president Joe Gregory, and former CFO Erin Callan. Many of the people close to the case believe that the investigation should not have dragged on for as long as it has, and now witnesses' memories are not as sharp, and some apparently, no longer feel the same incentive to provide information about their former colleagues. "Witnesses are just having a tough time remembering everything that happened,” said one person close to the investigation. “And several are pissed; they can’t understand why the SEC waited so long.” The SEC is claiming that the delay in the investigation was a result of a lack of manpower. SEC spokesman John Nester said, “There are only so many of us. Some people might think Lehman is the biggest fraud, but we may be looking at 15 other banks.” Gasparino's full report can be found here.