Lehman whistleblower lost job month after speaking out - papers

A key witness in the damning inquiry into Lehman Brothers’ collapse was laid off by the bank a month after raising concerns about the way it had accounted for $50bn of risky loans.

Matthew Lee, a senior vice-president in Lehman's accounting division, warned senior executives on May 16, 2008, that the bank was hiding huge risks from investors and regulators when it reported its quarterly figures, writes the Times.

By the end of June Mr Lee had lost his job "as part of a wider restructuring". He had worked for the bank for 14 years. Erwin Shustak, Mr Lee's lawyer, told The Wall Street Journal: "It was easier just to shut him up and let him go." Full story...

THE FEDERAL Reserve vowed once again to keep US interest rates at rock-bottom levels for "an extended period" while it waits to measure the strength and sustainability of the economic recovery.

The members of the Federal Open Market Committee, in their latest statement, maintained language that has become a touchstone for the credit markets, writes the Independent.

Traders parse each new statement for clues as to the timing of the first interest rate hikes, but yesterday's update suggests no change for much of the rest of this year, at least. Full story...

SADEQ SAYEED, Nomura's European boss and the architect of its daring swoop on Lehman Brothers' London operation in 2008, is stepping down.

The unexpected move triggered speculation that Mr Sayeed had fallen out with his bosses in Japan over how the takeover of Lehman is bedding down, and raised questions about whether Tokyo was committed to continuing to invest in Europe, writes the Times. Nomura said that Mr Sayeed, 57, was retiring. Full story...