• McKenna Quoted in Business Week re: Lehman and Valukas

    By • Mar 25th, 2010 • Category: You Can Quote Me On That

    I’ve been quoted today in a stellar piece by Paul Barrett on Anton Valukas.  Paul is an Assistant Managing Editor at Business Week.  Valukas is the Lehman Bankruptcy Examiner, a Chicago guy, and Managing Partner of law firm Jenner & Block.

    DUBIOUS BEHAVIOR

    What Valukas brought to the endeavor was a no-nonsense lack of deference toward Wall Street game playing, says Francine McKenna, a former director at PricewaterhouseCoopers. “That’s a Chicago thing,” adds McKenna, herself a resident of the city. She now runs an investigative Web site called Re: The Auditors. “The mindset is: I’ve been around the block, I know how the game is played, and I’m not impressed by fancy names,” she says.

    Barrett does a great job of putting the Lehman Report in the context of other bankruptcy examiner reports that have added significant actionable knowledge to high profile fraud cases such as Refco and New Century.

    The piece also highlights the idea of a Foreign Service model—with its specialized training; attractive pension eligibility after as little as 20 years on the job; and long-term career tracks, allowing for variety and new challenges—for financial regulators.

    That sounds something like my suggestion in January of 2009 for a National Service Corp for Accountability and Transparency – a way to put all of the currently in-transition accounting, audit and forensic specialists to work for the government. Maybe we can even move most of them out of conflicted audit firms and into public service to monitor taxpayer owned entities such as AIG, Fannie Mae and Freddie Mac.

    Read the rest of the piece, Lessons from the Lehman Autopsy, here.

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    9 Responses »

    1. Someone should look at the relationship between Lehman Bros. and Pacific Coast Capital Partners (PCCP) a company in El Segudo, CA, Lehman has funded something like $5B through that company over the years. One of the investments was The Culver Studios which they’re letting run into the ground so they can purchase it for a discount via the bankruptcy actions.

    2. […] Crisis of Our Own Design, with Floyd Norris, Chief Financial Correspondent, New York Times and Anton Valukas, Lehman Bankruptcy Examiner, Chairman, Jenner & Block. The program is sponsored by the NYCLA […]

    3. […] maybe you saw my quote in the print and online edition of BusinessWeek on Anton Valukas, the Lehman bankruptcy examiner or on Senator Ted Kaufman, one of the members of the Senate […]

    4. […] of the Lehman Brothers bankruptcy.  As such it is an honor to be on a panel tonight with Anton Valukas, the Lehman bankruptcy examiner.  It was his report that brought auditors, finally, into the […]

    5. […] & Young rather than Lehman executives? Many of the conclusions and footnotes to interviews in Jenner & Block Chairman Anton Valukas’ Lehman Bankruptcy Examiner report allude to the difficulty in getting EY’s Schilch and Hansen to give straight answers. The EY […]

    6. […] one of the members of the Senate Permanent Committee on Investigation in April or the one on Anton Valukas, the Lehman bankruptcy examiner in […]

    7. […] The Auditors will continue to cover Lehman, Repo 105, Tony Valukas, and the bankruptcy examiner’s report, as well as related topics. For more, […]

    8. […] turning point in attitudes towards this crisis, and the auditors’ role in particular, was the Lehman bankruptcy examiner’s report in March 2010.  This was the first time the issue of fraud was raised relative to major failures […]

    9. […] that followed soon after this piece include a nice quote in BusinessWeek and Part One and Part Two of my discussion of the Ernst & Young response to the release of the […]

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