‘PwC Did Not Do Its Job’ And Missed $2B Fraud, Judge Told

Law360, Washington (October 13, 2017, 6:56 PM EDT) -- PricewaterhouseCoopers LLP fundamentally bungled its auditing responsibilities when it failed to scrutinize mortgage transactions and missed a fraud scheme that led to the downfall of the bank PwC was supposed to monitor, the Federal Deposit Insurance Corp. said in D.C. federal court Friday.

Friday represented the closing arguments of this first phase of trial in the multi-faceted and years-long case the FDIC and Colonial BancGroup Inc. launched against PWC — a separate trial against fellow auditor Crowe Horwath LLP is scheduled for next month. The liability-phase...
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