Likely to be bailed-out? Then it’s a ‘going concern’

I’m not quite sure why this story isn’t topping every news bulletin, but the US-based Auditor’s Blog has an account of the big four auditing firms’ appearance before the UK’s House of Lords Economic Affairs Committee to answer questions on competition and their role in the financial crisis.

Do read the whole thing if you have time, but this line leaps out:

The leadership of the Big 4 audit firms in the UK has admitted that they did not issue “going concern” opinions because they were told, confidentially, by government officials the banks would be bailed out.

As Lord Lawson puts it:

“I find that absolutely astonishing, absolutely astonishing. It seems to me that you are saying that you noticed they were on very thin ice but you were completely relaxed about it because you knew there would be support, in other words, the taxpayer would support them,”

(hat-tip: Alberto Nardelli)

  • pippakin

    And you are surprised? Hmmm.

  • wild turkey

    ditto the wise pippakin above

    i believe Gore Vidal called the nexus of political power and ownership of capital the “banksparty”

    the banksparty makes investments; some wise, some speculative. but they always purchase the necessary politicians and therefore the government.

  • That is what is called compromising your professionalism for the sake of the Nation

  • wild turkey

    call it what you will

    in actualitie, it is compromising the nation for the benefits of one’s clients. in some quarters, that might be called professionalism.

    in other quarters it is called treason… and merits the ultimate sanction for treason and treachery…put the filth, their families, associates and assorted apologetic zipper lickers in the firing line.

  • pippakin

    RTE link saying the rate will likely be 6.7%. It cannot be done. It must not be agreed! Labour must distance themselves from this insanity.

  • pippakin

    Sorry! the link dropped off!