PwC found negligent by US judge over Colonial Bank’s $2bn fraud

Posted on Updated on

Source: accountancy 2 January 2018

PwC auditors were negligent as they failed to detect over $2bn fraud at Alabama’s Colonial Bank which led to its collapse in 2009, according to a US federal judge.

The Federal Deposit Insurance Corporation (FDIC) incurred a cost of $2.8bn after Colonial’s collapse and brought a professional negligence claim against PwC.

US district judge Barbara Jacobs Rothstein said that as auditor of parent company Colonial BancGroup, PwC failed to perform adequate checks and could have done more to prevent the bank’s collapse. The firm failed to respond to red flags and the judge will now consider whether PwC should be liable for damages.

Source article here



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s