SEC is looking into accounting at 19 biggest banks

Accounting tricks led to its collapse? Excessive leverage, loss of confidence in its ability to service its debts, and realization that many of the firm's assets were deemed toxic led to the collapse. Accounting "flexibility" is still being used today.

The Securities and Exchange Commission is examining whether any of the 19 largest U.S. banks are using an accounting trick that a bankruptcy examiner has said led to the collapse of Lehman Brothers, SEC Chairman Mary Schapiro said Tuesday.

Source: finance.yahoo.com