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

    By • Mar 20th, 2008 • Category: Audit Quality, Bear Stearns, Deloitte, EY, KPMG, MF Global, New Century, Northern Rock, PricewaterhouseCoopers, Societe Generale, Subprime

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    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:

    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.
    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.

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    2 Responses »

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    2. […] 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, […]