Please ensure Javascript is enabled for purposes of website accessibility
January 27, 2023

PwC Faces Damages That Range From ‘Bad’ to ‘Worse’ But Probably Far Short of ‘Catastrophic’ for Colonial Bank Failure

pwc colonial award

Francine McKenna reports on MarketWatch that the Federal Deposit Insurance Corp. stands to collect a pret-tay pret-tay pret-tay big chunk of change from PwC for the losses from the bankruptcy of Colonial Bank.

The FDIC, acting as receiver for the failed Colonial Bank Group that collapsed in 2009, has asked Judge Barbara Rothstein to award it $625 million in compensation for the net losses it sustained in paying depositors and other creditors of the bank from the federal deposit insurance fund.

Even PwC’s offer of $306 million would result in the largest-ever final judgment or jury verdict for accounting malpractice, and the fifth-largest accounting malpractice award ever, according to data compiled by research firm Audit Analytics.

Rothstein is not required to accept either version of the damage estimates.

Jim Peterson pegged the tipping point for a Big 4 failure last year at somewhere between $4 billion and $6 billion, so PwC will be fine. However, because all the other recent settlements PwC has reached have been confidential, we have no way of knowing what the firm has agreed to pay out in the last 12-18 months. It’s unlikely that the total sum has reached Peterson’s danger zone, but it’s not impossible that the firm has shelled out the equivalent of a so-so year at Grant Thornton.

[MW]

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

1 Comment

  1. St­art making residual profit each week… This can be a great part time job for anybody… The best part about it is that you can do this job from your house and earn from $100-$2k at the end of every week … Apply now and have your first check by the end of the week—–>>>> http://olaurl.com/15q65

Comments are closed.

Related articles

scissors

EY Germany Gives 40 Partners and 380 Staff the Boot to Boost Profitability After That Whole Wirecard Thing

EY has been tightening the purse strings over the past several months ahead of the big Project Everest split, the vote on which remains delayed and should happen before the end of this quarter. The firm did not hand out mid-year bonuses in December and sources say that travel, training, and even hiring are on […]

Do Ex-Big 4 Accountants Make Good NFL Team CEOs?

Last week the Chicago Bears introduced Kevin Warren, most recently commissioner of the Big Ten Conference who also has 21 years of experience as an NFL team executive, as the franchise’s fifth president and CEO in its 103-year history. Warren succeeds Ted Phillips who is retiring after 40 seasons with the Bears, including the last […]