Four weeks severance, termination date of September 1st, not performance related. Cities reporting bodies include: New York, Hartford, Dallas, Kansas City, Chicago, Indianapolis, and Cleveland. We’ve heard all levels have taken a hit, although it varies by city. We haven’t gotten any confirmation of partners being bought out at this point. West coast cities have yet to confirm victims since last night’s comments.
If you’ve got final numbers on your office or any other details we didn’t discuss here, shoot us an email: tips@goingconcern.com.
KPMG representatives had no comment.
UPDATE 4:11 pm: San Fran reports at least seven victims, six of which are SA’s.
UPDATE 2, 6:16 pm: San Fran updated to nine total, eight SA’s. Other cities reporting layoffs: Boston, Houston, and Louisville.
Category: Big 4
If it happens at a Big 4 accounting firm, we’re talking about it here.
KPMG Doomsday Eve?
We’re going to briefly remind you about the hammer that is going to drop on some unlucky Klynveldians tomorrow.
So far it sounds like there has been blood shed in Dallas, Indianapolis, and New York but no details on severance and it sounds like only second year associates have gotten shown the door so far.
If you’re one of the KPMG casualties, drop us a line at tips@goingconcern.com and give us the gory details: severance, number laid off, lunging across the desk, did the partner you met with wear an executioner’s mask? Tell us everything.
Follow up Rumor: Green-dotter Merit Increase Edition
After hearing speculation last week that Green-dotters were getting froze out, we got some potential details on the lucky few of you in the Northeast:
Get the scoop, after the jump
I’ve been told by a reliable source that merit increases will be available for 1s and 2s, but not for the majority of 3s and def not for 4s or 5s. On the AIP (bonus) side of the house, >50% of 3s and all 1s and 2s will get them. Of course, the actual amount will be smaller, I’ve also heard ~2% pool.
So, if you find yourself lucky enough to be on the good side of a particularly well connected senior partner, you might see a bump for all your trouble. Since performance rating cuts are all the rage these days, sources tell us the number of 1 and 2 will be scarce. We’d advise serious ass kissing but at this point you’re probably just getting the jump on next year (if you’re around).
KPMG Decides that Eating Lunch While Traveling for Work is Acceptable
Last week we learned about KPMG’s latest effort to do some belt tightening for the last two months of their fiscal year. These penny pinching plans included, most notably, filling your stockings with coal before winter.
On Thursday of last week a lot of the Kylnveldians, mostly in the Northeast, had not received the gracious and long winded email. Our suspicions at that time were that Tim Flynn and Co. were reconsidering the butchering of time honored tradition of drunken idiocy on company dime.
More, after the jump
Turns out out we were half right. It was noted in the comments and we received several tips that the Radio Station did indeed cave on their grand idea of not letting traveling partners and professionals expense their lunches “since this is a meal that one would buy during the workday regardless of location.”
If we were to guess, this would have been #2 on the list of the new policies that garnered most of your wrath. Well, you must have let them know because the firm then came out with this:
after hearing feedback from many of you about the short-term change to meal reimbursement policy, the firm has decided that for now the existing meal reimbursement policy provides the appropriate level of flexibility and room for judgement when it comes ot managing the cost of meals while traveling….
So FOR NOW your ass better get used to value menus and $5 footlongs because we’re guessing that’s the meaning of “ROOM FOR JUDGMENT“. If there has been more correspondence from up on high about this particular issue send us the details or discuss in the comments. On the other hand, folks in the Northeast, if you’re still in the dark, let us know.
Oh, and Santa Claus is still not coming to town.
KPMG UK’s Sweet New JPM Gig
Nothing like a good (alleged) fraud story to finish up our week, eh?
Just in case you missed the story, it appears as though KPMG UK will be a tad busy in the near term trying to unravel this little mess. I suppose that’s good news for the kids working those 4 day work weeks across the pond, though the same cannot be said for JPM, who is facing an unlimited fine as a result.
UK’s Daily Mail:
More, after the jump
The FSA has called in a top firm of accountants to examine the bank’s London activities after evidence emerged that JP Morgan had mixed customers’ funds with its own.
Banks are meant to maintain a strict segregation of their own money from that which is held on behalf of clients.
But JP Morgan managers in London discovered last month that client and bank money used for trading futures and options – a way of speculating on movements in currencies, share prices and commodities – had apparently been put into a single pool.
This isn’t the first time regulatory authorities have busted firms for pooling client money and using it to play craps in the market but it is certainly the first time the FSA has gone after a big player like JP Morgan.
JP Morgan claims an “operational error” in their options and futures arm dating as far back as 2002 caused the “mix-up” though we aren’t sure we buy that line. “We identified an operational error that was corrected within 24 hours of its discovery. No clients have lost money as a result of this error and we are cooperating fully with the FSA,” a spokeswoman for the bank said.
Sure, okay. Just because no clients lost any money doesn’t make it legal. It’s now up to KPMG to slog through 7 years of transactions (at JPM’s expense) to see if any clients missed out on interest due as a result. Prelim findings are due to the FSA by the end of August, with a final report expected in September.
Have fun, KPMG UK!
Rumor of the Day: KPMG Layoffs in Dallas Next Week
As if you didn’t need another excuse to go on a three day bender, we received a tip that audit professionals will be getting laid off at the Dallas Radio Station next Tuesday, the 18th. Tax professionals will get their turn in September, most likely after the filing deadline.
Word is that no one level is safe as the cuts will be made at all levels including partners.
KPMG did not immediately respond to our request for declined to comment.
If you’ve got more information on the sitch or you’ve heard similar rumors for other offices, drop us a line at tips@goingconcern.com.
E&Y SoCal Intern Offers: Don’t Spend it All in One Place
It may still be a little early for the citizens of Arnie, especially if you’ve got the Friday morning cocktail flu, but whatevs. We got word that E&Y audit interns have gotten their offers nationwide and Whale’s Vagina San Diego and L.A. are both getting $50k, no bonus. If you got a Masters, you’re getting $52k, no bonus (seems worth it now, eh?). No word on tax or advisory, so if you know these, fill us in.
Last year’s lucky little Ernies got a bonus so at the very least, that makes for a smidge of animosity. For all the love we’ve been giving Ern we haven’t got a lot of specifics on the actual details. Discuss in the comments or drop us the numbers at tips@goingconcern.com
Phil Mickelson 9 Box Update
Fill had a less than ideal first round, shooting +2, which is seven shots behind the leader. On the one hand, he’s well on his way to not winning the tournament. On the other, he’s well on his way to not finishing second.
Check our initial rating if you need to get caught up.
So after not considering a hell of a lot, we’ve come up with Fill’s new ranking:
Check out where the Radio Station billboard falls, after the jump
As you can see, Fill has dropped from the relative safety of SP5 to the less than acceptable position in NI7. He teed off at 9:35 EDT so Radio Station employees can waste their entire Friday watching Fill try to step it up.
Discuss the current ranking in the comments and if by chance you’re at the tournament following Fill, let him know that Going Concern (and Tim Flynn) would like to see more out of him today.
Phil Mickelson Gets 9 Boxed
We’re upping our coverage of Phil Fill Mickelson’s quest to not come in second place at this year’s PGA Championship.
In the spirit of performance review season, we thought we’d see where Phil Fill would fall on the illustrious Radio Station 9 box.
See the initial ranking, after the jump
As you can see, Phil Fill is right where he needs to be. We’d like to see him step up his game and shoot for that EP though. Right now we hear that he’s +1 at the turn for his first round. We’ll update you tomorrow morning with his first round results and his updated ranking.
Feel free to approve or disapprove of the current rating and give us your suggestions about where you think Phil Fill should be.
Deloitte is Baiting the New Hires
On a day like today, we never thought we’d be telling you about a firm actually spending money but color us surprised.
Deloitte will start issuing iPhones to partners, principals, and directors starting Monday, according to a tip we received and will be available to “eligible personnel on Monday, September 14.”
So the obvious question is who the hell is eligible? The trend seems that senior associates haven’t been getting squat so our money would be on the new hires getting the new toys gadgets business tools in order to write down everyone’s order for take out but we’ll keep our fingers crossed for you SA’s.
Ernst & Young Ups the Ante
Guest 46 @7:17 makes a good point and wants everyone to get some perspective on a firm’s priorities. Don’t even think for ONE SECOND that your office is thrifty stingy until they axe a corporate volunteering event because it conflicts with the FSO All Hands Webcast*.
More, after the jump
Uncle Ern would like you to forget about these difficult times by staying within the confines of your cube farm and getting down with a mandatory webcast because there are plenty of people without jobs out there that could volunteer instead.
The Radio Station takes a slight different approach, clearly thinking that if everyone sacrifices one night of open bar to help others, the joy you feel will certainly beat puking and then passing out in the bathroom at some hotel.
So now the debate looms: what firm currently wins the award for the best example of a company channeling its inner-George Costanza: E&Y or the Radio Station? Discuss in the comments and if you’ve got additional examples to bolster the case for/against your firm, please share.
*That’s the word we got from E&Y, so if someone can elaborate on just what the hell that is, that’d be great.
KPMG Takes Phil Mickelson FTW
Because we’re big fans of shameless promotion, we’re starting our coverage of the quest of the Radio Station’s walking billboard, Phil Mickelson, to win the PGA Championship. He’s teeing off circa now, so drop what you’re doing and get to at TV Radio Station duffer geeks.
Phil won the tournament back in 2005 but gets lots of attention for being a bridesmaid at the U.S. Open five times. Most notably for our purposes, he has not won any majors since he signed with the Radio Station back in early 2008.
No word on where Phil is falling on the 9 box rating system or if his visions of sugar plums have been dashed but if someone could put us in touch with his performance counselor or get us a copy of his contract with KPMG, that would be great.