Tuesday, June 30, 2009

Ernst & Young Might be Going Down but It's Not Because of This

So you merge your company with a bank and it turns out that the bank has about half a billion less in assets than they reported. Regulators come in, take over the bank and your life is ruined. RUINED! The next, most logical step (and most American, for that matter) is to sue anyone and everyone that remotely has got their stank on this thing because, dammit, businesses don't fail in America!

Alan Schein sold his mortgage marketing company (sounds like a scam) to Superior Bank of Illinois and turns out, Superior was making up their numbers. E&Y missed the booboo and now Schein is blaming the them, natch, because what the hell does he know about auditing or doing due diligence?

Oh, and Schein is also claiming that E&Y covered up the mistake because they were trying to sell their consulting arm at the time for $10 Bil and Capgemini, the buyer, would have never bought E&Y's consulting business because of a mistake made by the audit practice. NEVER!

Schein, obviously being a student of classic egomaniacal logic because, duh, his business was so kick ass that a multi-billion dollar deal WOULD NEVER HAVE HAPPENED had this accounting error was known by all.

Our advice to Mr. Schein would be that if you're going to make wild-ass accusations, at the very least try taking a less narcissistic route. You're a small fish pal. E&Y saves their cover ups for failures of Lehman-sized proportions and having serious Madoff exposure and auditing UBS, not your shady "mortgage marketing company" (which we still don't know what that is). E&Y, don't worry, we've got your back on this one.

Ernst & Young Sued for Allegedly Covering Up Bad Audits
[Law.com] Sphere: Related Content

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