When accounting goes unaccounted for
From a soon to be ex-Ernst & Young SA:
Being employed by a big 4 is like being in an abusive relationship. You know its bad for you but its still kind of addictive.
Right on the money? Dead wrong? Addictive like salt & vinegar potato chips or addictive like the stuff that’s in Rush Limbaugh’s medicine cabinet? Discuss.
You can breathe a sigh of relief, Green Dot Nation—Deloitte remains the largest accounting firm […]
Oh sure, anything is possible. However, on top of everyone not called Fox News calling P. Dubs the most shameless whore ever to issue a report on anything, Jonathan Weil at Bloomberg is now calling out some of P. Dubs’s (and KPMG probably for good measure) banking clients’ less-than consistent use of mark-to-whatever-the-hell-we-like.
Weil names three PwC clients (Midwest Banc Holdings, First Bancorp, BB&T Corp.) as showing loans with fair values greater than their carrying values as of June 30th. Midwest and First Bancorp’s stock prices are trading far below book value while BB&T’s stock price trades above book value.
As Weil points out, WTFK if these values are right or not? What is obvious is it seem like some banks are legitimately making a run at fair value and others are still using a dart board. Oh, and the PwC audit teams are okay with that. Nevermind comparability, Dow is above 10k bitches! Onward!
Mark-to-Make-Believe Turns Junk Loans to Gold [Bloomberg/Jonathan Weil]
In the Federal Deposit Insurance Corp.’s litigation against PwC over its audits of the failed […]