Why does it take so long to admit failure? Certainly the bankruptcy should have been a sign that things were not going to get better and that maybe it was time to “ringfence” their potential liability.
Citigroup unit and Deloitte are sued over subprime lender’s share issue
“A Citigroup unit and the accounting firm Deloitte & Touche were sued by an investor for helping a mortgage company issue $92.4 million in stock 14 weeks before the lender went bankrupt.
The four million shares issued by American Home Mortgage Investment have dropped by 99 percent since they were first offered for sale on April 30 at $23.10 each through Citigroup Global Markets.
Deloitte prepared American Home’s financial reports before the issue…”