Skip to: Content
Skip to: Site Navigation
Skip to: Search

July 19, 2008 2:12:24 AM CDT

Learn about Newser Points »

« Back to the grid | Next story »

Bankrupt Lender's Audit Lapses 'Mind Boggling'

Posted Mar 27, 08 8:23 AM CDT in Business 

(Newser) – Auditors at now-bankrupt New Century Financial—once one of the nation’s largest subprime lenders and one of the earliest to fail—were accused of “mind boggling” lapses in a Justice Department report on the debacle released yesterday. Partners at accounting firm KPMG are said to have ignored “significant improper and imprudent practices” in order to keep the company’s business, the New York Times reports.

The report says that while New Century didn’t engage in earnings manipulation, irregularities overlooked by KPMG “almost always resulted in increased earning.” The charges echo those accounting firm Arthur Anderson faced after the 2001 Enron collapse. The report’s lead investigator says KPMG and New Century execs could be liable for the losses; creditors say they are owed $35 billion.

Source New York Times

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon
Headquarters for New Century Financial Corporation in Irvine, Calif. which filed for bankruptcy protection Monday April 2, 2007.   (AP Photo/Lenny Ignelzi)
The offices of New Century Financial Corp. are seen in Irvine, Calif. in this March 13, 2007 file photo.   (AP Photo/Damian Dovarganes, file)
Headquarters for New Century Financial Corporation in Irvine, Calif., which filed for bankruptcy protection, is shown Monday April 2, 2007.   (AP Photo/Lenny Ignelzi)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (1 of 3)

Tags

credit crisis  • subprime crisis  • bankruptcy  • Justice Department  • Enron  • Arthur Anderson


Loading...

Loading...

Today's Most Popular


Other Business Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »