Tuesday, July 14, 2009

Ernst & Young Still Not Losing Sleep Over the Schein Lawsuit

Ernst & Young has the unenviable distinction being the large firm that has a major trial ongoing. We mentioned it awhile back, noting that while E&Y has got plenty of lawsuits to worry about, this one didn't seem like anything to sweat over.

Well, an E&Y witness has given our theory a little boost, stating that a type of the loan created by the Plaintiff, Alan Schein, and marketed by the failed bank, was "deceptive and predatory". Not exactly a flattering description.

Regardless of what E&Y did or did not do (and they've already paid fines to settle claims by regulators so they've got, at the very least, a smidge of guilt) the jury hearing "deceptive and predatory" in the same sentence as the plaintiff will go much farther than any Zapruder Film-type evidence that Schein might dig up.

Superior Bank Peddled Risky Loans, Ernst & Young Witness Says [Bloomberg] Sphere: Related Content

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