Let's Bash the Big 4 Some More: Lehman News Gets UK Regulators to Start Digging
Regulators in the UK are not mincing words like, say, the Saudis. Let it be known this has everything to do with Lehman (and they want to make sure you know that). Run, Big 87654, run!
The dominance of the 'Big Four' accounting firms could be under threat, as the Office of Fair Trading considers a probe into their role as auditors to the world's failed banks.
OFT chairman Phillip Collins let slip this week at the Future of Banking Commission that the competition watchdog was 'looking into this, but I can't say any more'.
A spokesman for the OFT confirmed it was considering whether or not to launch a formal investigation.
The possibility that Ernst & Young, PwC, Deloitte and KPMG could be broken up or have the scope of their activities limited comes in the light of allegations that E&Y did not flag up accounting trickery that hid the sorry state of Lehman Brothers' balance sheet in the lead-up to its collapse.
As I have previously stated, kindly shut the fuck up about EY and Lehman. Statements belong to management, and management is ultimately responsible for their content. Take care of that first and then we can move on to villainizing the accountants.