Gasparino: Witnesses Say SEC Waited Too Long to Probe Lehman

Charlie Gasparino is reporting that witnesses are now saying the SEC waited too long to investigate Lehman (LEHMQ) and their memories are growing foggy.

FBN: “The Securities and Exchange Commission is facing a major hurdle in its investigation into whether top Lehman executives misled investors about the firm’s deteriorating finances before its 2008 bankruptcy: It may have waited too long before actually starting the probe.

At least that’s the consensus among several key witnesses being interviewed by the commission in recent months about the firm’s controversial bankruptcy…Even though the commission launched its probe of Lehman not long after its 2008 bankruptcy, people close to the investigation say the SEC’s case remained largely dormant for years – that is, until public outrage from the Valukas report, which criticized the actions of top officials like former CEO Dick Fuld, former president Joe Gregory and former CFO Erin Callan during Lehman’s final months, began to boil over.

“Witnesses are just having a tough time remembering everything that happened,” said one person close to the investigation. “And several are pissed; they can’t understand why the SEC waited so long.”

Gasparino notes that this may be good news for Fuld and Callan, who as FBN first reported, appears to be the most recent focus of the SEC’s investigation, but it could be bad news for investigators looking to bring a case.

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