Lehman Examiner Says SEC Knew Firm Broke Risk Rules

Lehman Brothers Holdings Inc., which filed the biggest bankruptcy in U.S. history, violated its own risk-management rules with the knowledge of the U.S. Securities and Exchange Commission, a bankruptcy examiner said.

“We found that the SEC was aware of these excesses and simply acquiesced,” Anton R. Valukas, the Lehman examiner, said in a statement prepared for a House Financial Services Committee hearing today.