Lehman Brothers allegedly fired Michael Lee weeks after he raised red flags about the firm’s use of “Repo 105” in 2008. On Tuesday, The Wall Street Journal reported that Lee was fired after blowing the whistle on Lehman for moving $50 billion in loans off their balance sheet. Lee reportedly raised these concerns with the firm’s auditor, Ernst & Young.
Lee was a senior vice president at Lehman and had been with the company for fourteen years. Lehman claims that Lee was let go as a part of a larger downsizing initiative, according to The Wall Street Journal. Lehman concluded that Lee’s claims were unfounded after conducting their own investigation.