new york attorney general and incoming governor andrew cuomo charged ernst and young with helping lehman removed tens of billions of dollars in securities from its balance sheet in order to deceive the public about lehman's true liquidity condition you know i reported on this extensively when it was happening i called the peekaboo accounting this is a common groups on wall street where before the reporting is meant to be filed with the regulators you simply move debts around as part of this enormous ponzi scheme or hide the parcel scheme now ernst and young of course is been revealed as the. accounting firm that is engaged in the front and their defense of course is that while the lawyer said we could do it the lawyer said we could do it so it's legal because we paid off a bunch of lawyers to write a shyster opinion to say we could commit accounting fraud for lehman brothers while they were committing mortgage fraud so all the banks on wall street could commit securitized mortgage fraud around the world putting banks all over the world into dire straits and of course this gets right back

and when it's do it your bags turn to report they reciprocate by hiding bad debts on lehman's balance sheet and they go back and forth like this this is how you end up with a six hundred trillion or so on derivatives so-called this is just bad debt that's being created a to hide more debt and to shuttle this debt around the world in ways that give banks deal of reporting profits when there are no profits to report it remember enron went from a eighty billion dollar company to zero in a matter of minutes when it was revealed that they had just been a huge accounting scandal so i want to point out here by the way that you know as i as i mentioned at the top of this item that it is a civil lawsuit this is out right obvious criminal behavior and yet these banks for some reason get over and over charged with civil fines and that are very small compared to the crime committed in the damage done because look at this way andrew cuomo says this hour a lawsuit seeks to recover the themes collected by ernst and young while it was supposed to be using accountable honest measures to protect the pu

nick lehman can't remember names and faces clearly last year he had a stroke. yes he. does but even. though it's my son nick lehman's condition sometimes makes him imagine he's not it's old old news nursing home but in the old settlement of chick where everyone has a boat where christmas is celebrated in early january rather than in december and where people in nearly every home speak russian. to another there's. a group of. nick lehman is one of the few people here who still remember the russian era of the land its former legacy is gradually being forgotten much in the same way as old people's memories fade away i'd like to teach my children about their heritage and we've shared it. especially with our oldest child our son and i think the best way we can do it is to talk about it shares some of the stories maybe even some of the language i want them to understand are very rich cultural heritage it makes me think. it. is one of the most popular teachers and don't know high school. he used to teach english to russian children in the russian town of. course today he teac

. >> charlie: should lehman brothers have been saved?at's too complicated a question to answer straight up in the sense of "what would you do in the last weekend?" because i don't think that dealing with lehman was something that should have come down to the last weekend. >> charlie: they should have recognized much earlier. >> there was plenty of opportunity to see there were significant problems, there was plenty of opportunity for regulators to come in and intervene, and i also think the regulators needed to figure out what they were doing as opposed to sort of solving each crisis as it came, and so what we wound up with, with lehman brothers in a sense was almost the worst policy response in that first it was perceived that it would be protected and bailed out when bear stearns was sort of saved. then, they allowed it to fail. when they allowed it to fail, it seemed like, all right, fine, so they're not going to have any of these government bailouts and they're going to fight the moral hazard that comes from that. so the day they let

lehman brothers had $613 billion of debt when it collapsed in 2008. the suit seeks more than $150 million in fees that they received between 2001 and 2008 as the outside auditor for lehman brothers. the european stock market posted gains on tuesday amid low trading volume. investors ignored fresh concerns about the debt crisis after moody's said they might downgrade the sovereign debt of portugal. we have this report from frankfurt. >> the german stock market reached a new yearly high and traders are happy and stocks are rallying. china would like to ease the sovereign debt crisis these are mainly shares of export companies. shares of construction companies have been bouncing back and forth. traders were concerned about- trillion parents but they expect much higher price. >> it will stay in frankfurt with the dax index closed up at 777. the leading index of blue chips is up as well. stocks are moving higher in new york amid merger activity. the dow is now up. the euro is currently trading at $1.31. stronger domestic consumption has prompted the hambur

brothers and of course all the high pressure sales techniques from lehman brothers of the eighty's with marty shafir often and his book and still he travis was a legendary high pitch salesman on the phone at that time and you're right that's the technique if you get people emotionally involved you can steal money from them a lot quicker lehman brothers was an expert at it and they spread out all over wall street they took that technique to all these farms and then when the stock market crashed in two thousand the dot com they went they took this to the real estate brokerage markets here you've got all these phone salesmen and salesman using this technique of emotionally torturing people really it's the same way you torture people you get them softened up and you steal their money to get a big fat commission and it's beautiful it's america's the american dream to rape and pillage your fellow americans using this event sales technique so i understand ameriquest was also a company that's kind of like a the you know the who so financial rapist tells about america west right ameriquest start

alliance mortgage which was closely associated with lehman brothers used to pull the wool over the eyes of homeowners the the monster actually was was a two hour sales presentation most of which didn't even deal with a loan most of it was sort of like a psychological encounter session where the loan officers asked the homeowners lots of questions about their hopes and fears and dreams they call it finding the pain and if you could find the pain. and get people to cry often the managers would would give the loan officers of bonuses for. for getting people to break down in tears if you could do that then you could pretty much tell them anything and that's where the monster came in which was a real sort of mathematical. song and dance which actually persuaded pretty smart people that paying a higher interest rate would save them money in the long run and you would find people who would end up getting stuck paying twenty upfront points twenty thousand dollars and from points on one hundred thousand dollars loan yeah now you're talking my language i work that shearson lehman brothers and of

why wasn't lehman just nationalized if the u.s. taxpayer is paying for it anyway because on the u.s. taxpayer would have got the benefit of some hind i get it this way they get no benefits and remember of course bank of america bought merrill lynch with the same kind of deal they bought it for free again the benefits accrue to the bankers none of it trickles down to the people and you know the amazing thing is that what we're seeing is the emergence of a global banking cartel and all these banks consolidating into one super bank and of course the i.m.f. is now over in ireland raping the poor people they're imposing austerity measures because the i.m.f. is bankrupt the i.m.f. needs the twenty billion dollars in ireland balance sheet they need the pension assets that have been built up by the irish people and it's the. i mean if that's been a grip not ireland and same thing with spain same thing with portugal same thing with lehman brothers same thing with bear stearns these banks were technically not bankrupt in the sense that they

the upbeat sentiment pushed the s&p above its so-called pre-lehman collapse level. several of the nation's largest banks picked up 1% while a couple of big mergers added to the outlook for the day ahead. today we'll see third quarter revised gdp and existing home sales. the still sluggish real estate market took a toll on home builder hovnanian. dropped 13% thanks to slow demand. federal officials say deutsche bank has admitted to criminal wrongdoing and agreed to pay more than $550 million for helping wealthy clients avoid paying hundreds of millions of dollars in u.s. taxes. new york's attorney general has filed charges against accounting giant ernst & young accusing them for helping lehman brothers hide things. ernst & young says there is no factual or legal basis. >>> julian assange has confirmed bank of america is the target of his next big expose. assange predicts, quote, if they're operating in the same way, there will be resignations. >>> and keeping internet providers from interfery was web traffic down the road, and keep an eye on nike. shares close higher

the ceo says that the company followed -- lehman's financial statements clearly portrayed lehman as a highly leveraged entity. >> lisa meyers in our washington newsroom this morning. >>> it's 7:18, once again here's matt. >> good news this morning if you're in the market for a new car. the insurance i have has just given it's highest safety marks to cars, trucks and suvs. tom costello is in maryland with details on this. people need to jot down this information, tom. >> reporter: yeah, that's right and we're here because 00 dhyun is one of its surprise stories. they include the sonata as well as the santa fe, the hyundai genesis is on the list as well as the tucson. this year every top manufacturer have at least one top safety pick, 66 in total, compared to 27 a year ago. after years of crash testing car after car after car, 2011 may go down as the year when cars, minivans and suvs turned the safety corner. with 66 models earning top safety pick awards for protecting passengers in front, side and rear crashes and now rollovers. while using electronic stability control to keep cars on

lehman brothers had $613 billion of debt when it collapsed in 2008. the suit seeks more than $150 million in fees that they received between 2001 and 2008 as the outside auditor for lehman brothers. the european stock market posted gains on tuesday amid low trading volume. investors ignored fresh concerns about the debt crisis after moody's said they might downgrade the sovereign debt of portugal. we have this report from frankfurt. >> the german stock market reached a new yearly high and traders are happy and stocks are rallying. china would like to ease the sovereign debt crisis these are mainly shares of export companies. shares of construction companies have been bouncing back and forth. traders were concerned about- trillion parents but they expect much higher price. >> it will stay in frankfurt with the dax index closed up at 777. the leading index of blue chips is up as well. stocks are moving higher in new york amid merger activity. the dow is now up. the euro is currently trading at $1.31. stronger domestic consumption has prompted the hambur

the morning that lehman imploded, a partner at the v.c. firm called me to tell me that they were backing out of our deal. in fact, they were putting on hold all new investments. because it sort of looked like the world might be ending. two years later, the venture capital landscape hasn't so much recovered as it's readjusted. gone are the days when a v.c. firm would fund a totally cool startup based on an idea and a founder. today, founders have to have boot-strapped their startups into operational mode, maybe even already be generating revenue, before a venture capitalist will invest. while that may sound like sound investing, it's made entrepreneurs wonder where the venture in venture capital has gone. its all about growth capital for a proven business these days. where is that first investment coming from? other than the tried-and-true friends-and-family hat-passing, in many cases, angel investors have taken the place of first- round v.c. high-net-worth individuals are keeping the venture part of venture capital alive. the effects of th

with their families at home in lehman, ohio.ob woodruff tells their story. >> this is the bowcrust family living outside of columbus, ohio. they had no experience with the military until their 21-year-old son dan joined lima company and got the word he was heading to afghanistan. >> i'm not okay. it's just a little knot that's in your stomach and i don't think it's gonna go away until you come home. >> staff sergeant dan back well and his wife jackie have three young children. >> is your daddy in the army or the marines. >> the marines. >> you like the marines? >> they're the good ones. >> in afghanistan the sergeant told us his biggest concern is his three year sold son logan born with a disease that needs a transplant for intestines. now logan is in serious condition in a hospital in cincinnati. >> oh, i hate seeing you like this. >> when's he gonna come home? >> i'm hoping before christmas but i'm not sure. >> then there is sergeant fatilli and his wife melanie expecting their first child. >> about the middle of his appointme

it's part of a group challenging lehman brothers's plan for remaining assets of $58 billion. not enough to cover $1 trillion in claims. the california public employees requirement system is also part of the filing seeking fair treatment for lehman creditors. >> there's an alarming number of raccoon attacks taking place in alameda. why alameda? it turns out there's a different between raccoons on the loose there and in other parts of the bay area. allen wong explains. >> an open dog door led to an all out battle at 3 a.m. in the cruise family kitchen (barking ") >> four full grown raccoons versus sierra, a 15-year-old lab mix and sophie, a chihuahua." >> she was bit her on the nose. also here on the side. see where they'd tried to bite ahold of her arm. >> sophie found self out matched. >> they had a hold of her and was pulling back and off like this with the little dog in their mouth. >> that's why we like to inform the public not to walk the dog after dark. >> the alameda county environment health department represents locking your dog door at night. they say the raccoons ar

accounting firm to come under suspicion of major fraud he's been charged with helping lehman brothers conceal billions of dollars in debt before the investment bank collapse or his financial guru max kaiser says wall street is awash with similar malpractise. now ernst and young of course is been revealed as the accounting firm that is engaged in the for and their defense of course is that well the lawyer said we could do it the lawyer said we could do it so it's legal because we paid off a bunch of lawyers to write a shyster opinion to say we could commit accounting fraud for lehman brothers while they were committing mortgage fraud so all the banks on wall street could commit securitized mortgage fraud around the world putting banks all over the world into dire straits and of course this gets right back to the enron scandal arthur andersen was caught doing something similar they went out of business or sucked up by one of these other major accounting firms and the entire business model of wall street and by association america is fraud as i've said before if you took fraud out of the