The New York Attorney General's (the "NYAG") lawsuit against Ernst & Young LLP ("E&Y") alleging fraud in connection with E&Y's auditing services to Lehman Brothers ("Lehman"). At issue is Lehman's use of Repo 105 transactions. Obtain an understanding of Repo 105 transactions by reading this part of the Lehman bankruptcy report:https://jenner.com/lehman/VOLUME%203.pdf.

Focus primarily on the following sections of the report:

• Repo 105 - Executive Summary and Introduction (pp. 732-63)
• A typical Repo 105 transaction, including accounting treatment thereof (p. 765-800)
• Ernst & Young's Knowledge of Lehman's Repo 105 program (p. 948-62).

Links to additional sources of information (including the NYAG's complaint initiating the lawsuit and various E&Y responses) are posted below under "Supplementary Information".

Legal Analysis: Summarize the case against E&Y concerning Lehman's use of Repo 105 transactions.

In particular, identify and address your client's strongest and weakest arguments.You are assigned to E&Y, the opposite - you will want to explain why E&Y's liability should be limited or show that E&Y is not liable.