Sun, Oct 19, 2008 - Page 11 News List

Prosecutors subpoena ex- Lehman CEO Richard Fuld


Federal prosecutors investigating the collapse of Lehman Brothers have subpoenaed several executives associated with the company, including former CEO Richard Fuld, a source briefed on the inquiry said.

An attorney for Lehman Brothers Holdings, Harvey Miller, told a bankruptcy court judge on Thursday that at least 12 people have received grand jury subpoenas in connection with several ongoing probes of the bank’s demise.

He did not identify which executives had been asked for information, but said the company was dealing with separate investigations by federal prosecutors in New Jersey, Brooklyn and Manhattan. New Jersey’s attorney general has said state securities regulators there are also investigating.

Separately, Singapore’s central bank was investigating accusations of misconduct in the sale of investments packaged by Lehman Brothers Holdings and other financial institutions (FI) hit by the global financial crisis, news reports said yesterday.

The Monetary Authority of Singapore “confirms that we have been conducting formal inquiries into allegation of breaches of law, inadequate internal controls by the FIs or poor sales practices by their representatives,” the authority said in a statement on Friday.

It was the latest move by the central bank to help some of the 10,000 retail investors in Singapore who invested S$500 million (US$337.91 million) in financial products linked to Lehman Brothers.

Singaporeans who bought failed Lehman minibonds have been pressing the government to help salvage their investments. The central bank has not ruled out buying back Lehman minibonds.

Meanwhile, the Hong Kong Monetary Authority appointed PricewaterhouseCoopers LLP to monitor bank repurchases of minibonds guaranteed by Lehman Brothers.

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