PwC, Do You Have Some Colonial Bank Sins to Confess?
Hey PwC office in Florida, this is for you. I saw what you did there and because I'm such a nice person, I did your Googling for you. But hey, since you are the ones who audit Colonial BancGroup, you probably already knew that you audited them. You're welcome. Next time, just shoot me an e-mail and ask. I don't bite.
In fact, I found a comprehensive list of ALL bank auditors. Someone bookmark this as I'm sure it'll be useful later when all the fraud starts coming down the pipe. Has someone alerted the PCAOB yet? No fair that Deloitte gets all the action, but I'm sure they'll get some more as a result of TBW.
Hope you have a Plan B, PwC.
WSJ covered Deloitte's part in the Colonial/TBW mess but when will PwC confess its sins? Go on, now:
A person involved in the federal probe said Taylor Bean had told Ginnie Mae that a delay in filing was due to the planned investment in Colonial. Later, however, Ginnie Mae discovered that Taylor Bean hadn't disclosed that its independent auditor, Deloitte LLP, had resigned because of "irregular transactions" that raised concerns about fraud. A spokesman at Deloitte declined to comment.
Colonial's financial problems have stirred worry in the mortgage market because the bank is one of the nation's largest providers of short-term credit to small, independent mortgage banks. These mortgage lenders have found it hard to obtain the short-term loans they need to allow them to fund home mortgages. If Colonial exits the warehouse-lending business, that would be "devastating" for many mortgage banks, said Scott Stern, chief executive officer of Lenders One, a St. Louis cooperative that provides services to about 135 mortgage banks across the U.S.
Check it, I'm no auditor but it wouldn't have been all that difficult to see the red flags in CNB's statements. In fact, why didn't you just try sticking their statement of cash flows on a dart board to figure out how many footnotes you'd need when you expressed your opinion?
"In our opinion, the consolidated financial statements listed in the accompanying index present fairly, in all material respects, the financial position of The Colonial BancGroup, Inc. and its subsidiaries at December 31, 2008 and 2007 and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2008 in conformity with accounting principles generally accepted in the United States of America."
Your words, not mine, PwC. So now that Colonial and TBW are under the microscope for accounting fraud, are you going to claim that this suddenly occurred within a year's time? Funny how financial statements can do that, isn't it?
I would love an answer. Trust me, you'd rather answer to me than a judge.
Anyone remember Enron?
The Colonial/TBW story thus far is here in case you need to catch up.
p.s. I am merely wildly speculating here. Only PwC knows what part it played in missing any of this.
Hope they saw what they did there.