http://retheauditors.com/2007/03/14/new-century-financial-its-kpmg-again/ The Business of the Big 4 Audit Firms Mon, 21 May 2012 14:10:34 +0000 http://wordpress.org/?v=2.9.1 hourly 1 http://retheauditors.com/2007/03/14/new-century-financial-its-kpmg-again/comment-page-1/#comment-157287 re: The Auditors » Blog Archive » Servicing The Mortgage Industry: An Update Fri, 25 Nov 2011 23:02:09 +0000 http://76.12.174.187/?p=267#comment-157287 [...] first blog post on this site to use the word “subprime” was about New Century Financial, a KPMG client, mortgage originator, and one of the first failures of the coming [...] [...] first blog post on this site to use the word “subprime” was about New Century Financial, a KPMG client, mortgage originator, and one of the first failures of the coming [...]

]]> http://retheauditors.com/2007/03/14/new-century-financial-its-kpmg-again/comment-page-1/#comment-155364 re: The Auditors » Blog Archive » CNBC’S Carney Highlights McKenna And Forbes On Bank of America Sun, 28 Aug 2011 18:21:14 +0000 http://76.12.174.187/?p=267#comment-155364 [...] McKenna first reported on poor disclosures at a KPMG audited company in 2007. That company was New Century. It hadn’t disclosed anything about repurchase risk in earlier filings with the Securities and Exchange Commission. But, suddenly, it was revealing that banks were demanding that it buy back mortgages it had sold. If all the mortgages were put back to the company, New Century said it would be on the hook for $8.4 billion. [...] [...] McKenna first reported on poor disclosures at a KPMG audited company in 2007. That company was New Century. It hadn’t disclosed anything about repurchase risk in earlier filings with the Securities and Exchange Commission. But, suddenly, it was revealing that banks were demanding that it buy back mortgages it had sold. If all the mortgages were put back to the company, New Century said it would be on the hook for $8.4 billion. [...]

]]> http://retheauditors.com/2007/03/14/new-century-financial-its-kpmg-again/comment-page-1/#comment-154966 re: The Auditors » Blog Archive » Going In Circles: A Few Remarks On Audit Reform Thu, 14 Jul 2011 16:58:54 +0000 http://76.12.174.187/?p=267#comment-154966 [...] role in the latest crisis is only recently being examined. I’ve been pushing hard for that since 2007 when we started to see the subprime crisis and the failures of mortgage originators and home [...] [...] role in the latest crisis is only recently being examined. I’ve been pushing hard for that since 2007 when we started to see the subprime crisis and the failures of mortgage originators and home [...]

]]> http://retheauditors.com/2007/03/14/new-century-financial-its-kpmg-again/comment-page-1/#comment-140202 re: The Auditors » Blog Archive » Repurchase Risk (Put-Back) Getting Full Court Press At CNBC Wed, 24 Nov 2010 04:54:51 +0000 http://76.12.174.187/?p=267#comment-140202 [...] McKenna first reported on poor disclosures at a KPMG audited company in 2007. That company was New Century. It hadn’t disclosed anything about repurchase risk in earlier filings with the Securities and Exchange Commission. But, suddenly, it was revealing that banks were demanding that it buy back mortgages it had sold. If all the mortgages were put back to the company, New Century said it would be on the hook for $8.4 billion. [...] [...] McKenna first reported on poor disclosures at a KPMG audited company in 2007. That company was New Century. It hadn’t disclosed anything about repurchase risk in earlier filings with the Securities and Exchange Commission. But, suddenly, it was revealing that banks were demanding that it buy back mortgages it had sold. If all the mortgages were put back to the company, New Century said it would be on the hook for $8.4 billion. [...]

]]> http://retheauditors.com/2007/03/14/new-century-financial-its-kpmg-again/comment-page-1/#comment-105209 Francine McKenna: Key Indicator for Repurchase Risk Losses? Audited By KPMG | Best Breaking News Fri, 30 Apr 2010 22:31:17 +0000 http://76.12.174.187/?p=267#comment-105209 [...] you about the poor disclosure practices surrounding repurchase risk. It was all the way back in March of 2007 and I was referring to the lack of disclosures surrounding New Century Financial. In a filing with [...] [...] you about the poor disclosure practices surrounding repurchase risk. It was all the way back in March of 2007 and I was referring to the lack of disclosures surrounding New Century Financial. In a filing with [...]

]]> http://retheauditors.com/2007/03/14/new-century-financial-its-kpmg-again/comment-page-1/#comment-105174 Francine McKenna: Key Indicator for Repurchase Risk Losses? Audited By KPMG | Top Feeds News Fri, 30 Apr 2010 20:47:21 +0000 http://76.12.174.187/?p=267#comment-105174 [...] you about the poor disclosure practices surrounding repurchase risk. It was all the way back in March of 2007 and I was referring to the lack of disclosures surrounding New Century Financial. In a filing with [...] [...] you about the poor disclosure practices surrounding repurchase risk. It was all the way back in March of 2007 and I was referring to the lack of disclosures surrounding New Century Financial. In a filing with [...]

]]> http://retheauditors.com/2007/03/14/new-century-financial-its-kpmg-again/comment-page-1/#comment-61340 re: The Auditors » Blog Archive » They Weren’t There: Auditors And The Financial Crisis Mon, 07 Dec 2009 23:48:55 +0000 http://76.12.174.187/?p=267#comment-61340 [...] since 2007.  My first post to mention subprime was March 14, 2007.  In that post, discussing KPMG and New Century, I talked about something that even the esteemed short David Einhorn missed: Repurchase risk was [...] [...] since 2007.  My first post to mention subprime was March 14, 2007.  In that post, discussing KPMG and New Century, I talked about something that even the esteemed short David Einhorn missed: Repurchase risk was [...]

]]> http://retheauditors.com/2007/03/14/new-century-financial-its-kpmg-again/comment-page-1/#comment-3291 re: The Auditors » Blog Archive » KPMG And New Century - The Deed Was Done Thu, 02 Apr 2009 03:29:29 +0000 http://76.12.174.187/?p=267#comment-3291 [...] blog has tracked this story from the beginning. Go here, here, here and here for [...] [...] blog has tracked this story from the beginning. Go here, here, here and here for [...]

]]> http://retheauditors.com/2007/03/14/new-century-financial-its-kpmg-again/comment-page-1/#comment-464 Anonymous Thu, 27 Mar 2008 17:50:00 +0000 http://76.12.174.187/?p=267#comment-464 As an ex-auditor in public practice, it is very tough to successfully sue the auditors. It's too early to presume anything (auditors at fault or the company). In short, the root of this issue will be whether or not KPMG should have been aware of the risk and was the disclosure that was made - was it adequate. Obviously, the only way to determine what KPMG knew and when is through a long draw-out legal battle, and more than likely, that is what we will see. That is unless KPMG can figure out another way to score a deal with the Dept. of Justice like it did when it had it's tax-shelter debacle (They created a tax shelter investment vehicle known as Blips which cut the gov't out of a good amount of tax dollars) a couple of years ago. Who knows. The funny thing is the KPMG audits a good chunk of the Federal Gov't. I think they'll figure out a way to at least minimize the damage of their own auditors. As an ex-auditor in public practice, it is very tough to successfully sue the auditors. It’s too early to presume anything (auditors at fault or the company). In short, the root of this issue will be whether or not KPMG should have been aware of the risk and was the disclosure that was made – was it adequate. Obviously, the only way to determine what KPMG knew and when is through a long draw-out legal battle, and more than likely, that is what we will see. That is unless KPMG can figure out another way to score a deal with the Dept. of Justice like it did when it had it’s tax-shelter debacle (They created a tax shelter investment vehicle known as Blips which cut the gov’t out of a good amount of tax dollars) a couple of years ago. Who knows. The funny thing is the KPMG audits a good chunk of the Federal Gov’t. I think they’ll figure out a way to at least minimize the damage of their own auditors.

]]> http://retheauditors.com/2007/03/14/new-century-financial-its-kpmg-again/comment-page-1/#comment-463 Anonymous Thu, 27 Mar 2008 14:52:00 +0000 http://76.12.174.187/?p=267#comment-463 it is very difficult to sue the auditor. So... who really cares. It is not the first time for an auditor to cook the books. it is very difficult to sue the auditor. So… who really cares. It is not the first time for an auditor to cook the books.

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