View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
June 9, 2010

PFF Bancorp creditors target KPMG

PFF Bancorp creditors are seeking permission to probe KPMG US to establish whether the auditor knew the failed financial services company was taking on too much risk.

PFF Bancorp’s official committee of unsecured creditors filed court documents in the US Bankruptcy Court requesting KPMG release documents to ascertain if the auditor was aware the company was undercapitalised prior to its collapse in 2008.

“Information in KPMG’s possession may support potential claims against third parties and against KPMG itself, if, for example, it becomes apparent that KPMG knew or should have known at an early date of any overly-aggressive or inadequately-controlled loan practices of the (company),” PFF Bancorp creditors wrote in the request.

The creditors also want to establish if KPMG knew of PFF’s lending portfolio risk profile and its failure to maintain adequate loan reserves.

The California based PFF Bank and Trust was seized in November 2008 by US regulators and its assets sold to US Bancorp.

A hearing on the creditors’ request is set for June 23.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A roundup of the latest news and analysis, sent every Wednesday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to International Accounting Bulletin