KPMG Has A $1 Billion New Century Problem

KPMG is being sued for $1bn by the liquidators of New Century, the collapsed subprime lender, in the first big case against an auditor arising from the current financial crisis. If the New Century trustee is successful, “it may embolden others to look more closely at the possibility of bringing [accounting] firms to some level of culpability for the things that happened,” that led to the credit crisis, Francine McKenna, president of McKenna Partners LLC, a corporate-governance consultancy, said in an interview in the Wall Street Journal.

Subprime Litigation – Round Two, Bear Stearns Style

Picture Source First, it was KPMG and New Century.  Now it’s the Bear Stearns hedge funds.   Who wants to bet which Big 4 firm is next? Looks like Jake Zamansky is going to stay very , very busy… Bear Stearns, Deloitte sued over hedge fund losses The liquidators of two Bear Stearns Cos mortgage hedge […]

KPMG Has Had Tough Weeks Before

Michael David Thomas of the Daily Caveat reminds me that the hits just keep on coming for KPMG this week.  Their decade old issues with Xerox bit them in the ass again.   That’s the problem, if there is one, with the securities litigation approach to bringing justice and exposure regarding the roles played by […]

KPMG And New Century – The Deed Was Done

And this dispatch from an Australian blogger , who makes the connection between KPMG/New Century and KPMG and some recent failures amongst their clients down under…. …According to the report, one of the reasons for KPMG’s apparent gross failure to adequately undertake its responsibilities was due to it being intimidated by the forceful nature of […]

Oh! How The Mighty Have Fallen – Update On Auditors And Their Banking Clients

Picture Source Back in November, I wrote about the imperial bankers and the impending doom and gloom that permeated the market. I warned that the CEOs and their Big 4 buddies should be nervous, too.   The Big 4 are now inextricably tied to their clients’ fortunes. Lawsuits are flying fast and furious as soon […]