Still unfolding: The scam that hit Lehman Brothers

The more we learn about this scam, the more troubling it becomes. Lehman Brothers ostensibly was the victim, but people also are wondering how top execs could possibly have let this happen. As noted, Lehman made a $350 million loan in a Japanese biotech company, thinking the venture was backed by Marubeni, a well-known trading firm. But Lehman now says the whole thing was a sophisticated scam--replete with fake employees, forged documents and the like--according to the AP. Lehman officials assumed the letterhead and all the meetings at the Marubeni building were real. Lehman is not the first victim. Still, you have to wonder about the supposed controls for these things. Where did the due diligence break down? Lehman has a lot to answer for.   

For more:
- here's an AP update

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