Oh! How The Mighty Have Fallen – Update On Auditors And Their Banking Clients
By Francine • Mar 20th, 2008 • Category: Audit Quality, Bear Stearns, Deloitte, EY, KPMG, MF Global, New Century, Northern Rock, PricewaterhouseCoopers, Societe Generale, Subprime
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 as any particular situation appears to be deteriorating.
Let’s review the scorecard:
From November:
Merrill and Bear Stearns share Deloitte as an auditor, who also had American Home.
Merrill (Deloitte) and Citibank (KPMG) have already seen suits filed.
And now:
Northern Rock (PwC) has been nationalized.
Countrywide (KPMG) seems to think “The Little Engine That Could” is a strategy role model. And Bank of America (PwC) has bought the farm on that one.
Morgan Stanley (Deloitte, again) is drawing from the Fed’s discount window because it is “paranoid”.
Where have I heard that before?
Rogue traders figure into SocGen (Deloitte) and MF Global’s (PwC) issues, according to them.
And The Sheriff of Wall Street is no longer on the job.
I don’t know about you, but I’m glad I rent.
And that I don’t work for a Big 4 firm or a bank anymore.
And I’m stocking up on canned goods.
My portfolio is in Motorola and Microsoft.
I like stocks that begin with “M.”
But, I’m still buying Manolos and getting manicures.
A girl has to have some luxuries.
Francine is
Email this author | All posts by Francine
Francine McKenna (@retheauditors) has more than twenty-five years of experience in consulting and professional services including tenure at two Big 4 firms, both in the US and abroad. Look for my column, 
Stocking up on canned goods? You should look at Petropest Launchpad. Buzz Saw’s been at it for a long time.
[...] accountants. I agree with this, at least. Even with the rules at their fingertips, the accountants, the Big 4, did not accurately interpret and enforce them. As a result, you now see the dramatic corrections as failures and collapses such as New Century, [...]