Fuld: Lehman 'unfairly vilified'

Richard Fuld, former CEO of Lehman Brothers, on Monday slammed a court-appointed examiner's report on the firm's bankruptcy, saying it and the media have led Lehman to be "unfairly vilified."

Fuld, in written testimony prepared for a House Financial Services Committee hearing, said the examiner's report on accounting tactics, "distorted the relevant facts, and the press, in turn, distorted the examiner's report. The result is that Lehman and its people have been unfairly vilified."

Fuld took aim specifically at the court-appointed examiner's report on "Repo 105," an accounting tool that resulted in the firm appearing to have less leverage. Anton Valukas, the examiner, said Lehman did not disclose $50 billion in transactions related to this tactic.

"It affirmatively and erroneously state in its public filings that it used repo transactions solely as financings... The failure to disclose the facts was not appropriate," Valukas said in prepared testimony.

Fuld said he was not aware of the accounting issue until after the firm went bankrupt in 2008. And he said the tactic met accounting standards.

"Lehman should not be criticized for complying with the applicable accounting standards," Fuld said.