@Clusterstock Did KPMG Fudge Repurchase Risk Again?

By • Sep 20th, 2009 • Category: Writing for Others

I wrote a post today, joining the discussion over at Clusterstock.com regarding Wells Fargo and their apparent lack of disclosure for various risks.

Did Wells Fargo’s Auditors Miss Repurchase Risk?

“How does the New Century situation and KPMG’s role in it remind me of Wells Fargo now?  Well, in both cases, there’s no disclosure of the quantity and quality of the repurchase risk to the organization…The lack of disclosure of this issue here mirrors the lack of disclosure in New Century and perhaps in other KPMG clients such at Citigroup, Countrywide ( now inside Bank of America) and others.  How do I know there could be a pattern? Because the inspections of KPMG by the PCAOB, their regulator, tell us they have been called on auditing deficiencies just like this.  Do we have to wait for another post-failure lawsuit to bring some sense, and some sunshine, to the system? “

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6 Responses »

  1. […] even the esteemed short David Einhorn missed: Repurchase risk was not being disclosed.  I’m still writing about repurchase risk and the banks are still obfuscating it with the acquiescence of their […]

  2. […] I warned you again seven months ago that another KPMG client, Wachovia/Wells Fargo, has the same poor disclosure of repurchase risk. Did Wells Fargo’s Auditors Miss Repurchase Risk? […]

  3. […] when it comes to approving estimates of loan loss reserves. That claim was the smoking gun in the New Century litigation.  New Century is reportedly settled, so the truth will be buried, but the PCAOB told […]

  4. […] Then I told you in September of 2009 about the risk to Wells Fargo/Wachovia. Did Wells Fargo’s Auditors Miss Repurchase Risk? […]

  5. […] when it comes to auditing estimates of loan loss reserves. That claim was the smoking gun in the New Century litigation.  New Century is reportedly settled, so the truth will be buried, but the PCAOB told […]

  6. […] was in September of 2009. “Did Wells Fargo’s Auditors Miss Repurchase Risk?” was […]

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