Thursday, March 27, 2008
A report by the bankruptcy court examiner into the collapse of New Century Financial, one of the largest subprime lenders before its bankruptcy, criticizes its auditor KPMG for enabling certain "significant improper and imprudent practices." It also says that the auditor acquiesced to the client for fear of being replaced. A spokesperson for KPMG stated it strongly disagreed with the findings. NYTimes, Inquiry Assails Accounting Firm in Lender’s Fall; WSJ, KPMG Aided New Century Missteps, Report Says.