The accounting giant named Ernst & Young had been charged with a lawsuit by the government indicating its efforts to assign blame for the financial problem.

The suit was filed by the outgoing the outgoing New York state attorney general, Andrew Cuomo. In the lawsuit Ernst & Young had been accused for helping Lehman Bros. hiding the fact of its receding resources in the months prior to the collapse of the investment bank in September 2008.

The complaint lodged by Cuomo which was filed in state court had their focuses on a set of short-term transactions that started from 2001and allowed Lehman to look resourceful and less risky when it posted its quarterly financial data.

In the lawsuit Ernst& Young was accused for giving approval to the so-called Repo one hundred and five transactions and the bank signed off financial reports that did not disclose them.

The complaint pointed out that while Lehman Bros deceived the public, Ernst & Young sat quietly without protesting.

It had been stated by the New York based accounting firm that they would contest the lawsuit.

The accounting firm stated that Lehman had been portrayed as a highly leveraged bank as per its audited financial statements. It showed that the bank was running its business in a volatile and risky industry and moreover no accounting issues can be blamed for the institution's bankruptcy.

The suit is similar to another that happened way back in 2001 after the energy giant Enron collapsed. At that time prosecutors blamed another accounting firm named Arthur Anderson for many of the problems of Enron.

Anderson went out of business for a criminal indictment and thus big accounting firm of the US came down to four from five.