March 27, 2008

So how did the mortgage lenders lose hundreds of billions, while nobody knew what was going on? It was the corrupt and incompetent auditors - again


We knew what was going on. We told you IndyMac, First Fed, New Century, WaMu, Countrywide, Bear Stearns, Lehman Brothers and so many more were cooking their books, not marking to market, aiding in obvious mortgage fraud, violating Sarbanes-Oxley, and possibly going bankrupt.

It was all so obvious.


But if you look at these toxic lenders' audited financial statements over the past few years (and weeks), there was no problema. Everything was fine, the books were in order, the balance sheet was great. Write-down? Mark-to-market? Nah! Everything's fine!

Thank you KPMG. Thank you PriceWaterhouse. Thank you Deloitte. And thank you Ernst & Young. You fu*ked America. You destroyed the worldwide financial system, and the world's trust in America. And you all need to get sued something fierce.


Again.

New Century Bankruptcy Examiner Says KPMG Aided Fraud (Update2)

March 26 (Bloomberg) -- New Century Financial Corp.'s bankrupt estate might have cause to sue its former accountant KPMG LLP and some directors and officers for improper accounting leading up to its bankruptcy, a court examiner said in a report.

New Century ``engaged in a number of significant improper and imprudent practices related to its loan originations, operations, accounting and financial reporting processes,'' Missal wrote in the report. He said ``KPMG contributed to certain of these accounting and financial reporting deficiencies by enabling them to persist'' and in some cases ``precipitating'' a departure from ``applicable accounting standards.''

``This is really the embryo of the credit crisis,'' Missal said today in a phone interview. ``The theme of the report is how easily the loans were originated, how exceptions were made, how they used bad appraisals. There were no appropriate internal controls and KPMG failed to look at these things skeptically.''

4 comments:

Afterthought said...

It's clear that Baseless Ben (consult your Machiavelli) is going to do whatever they tell him to do: that is why they put him in there.

With inflation rampant he should have jacked up interest rates and pushed the economy into a recession; its text book after all.

But since this is an election year, he wants to put off the crash until after November. That's all this is folks.

million said...

New Century's small 'taters compared to KPMG's involvement w/ CFC. again, Grant Thornton (fired by CFC in late 2003) partners are creaming their suits in exuberant joy from all the business they're about to get from ex-KPMG clients.

Refuse to buy overpriced said...

America's greatest need is scrupulously honest accountants and economists who care about the well-being of the country as a whole.

Right now we have too many accountants and economists who will sell their integrity.

Anonymous said...

So let me get this straight...

Step 1: Have corrupt business practices that only make money due to corrupt accounting.
Step 2: Hire corrupt accounting firm to do said accounting.
Step 3: Go bankrupt once the pyramid scheme collapses.
Step 4: Sue accounting firm...for doing what you told it to do?

Only in America!