Accountancy Age, Accountancy Age, Wednesday 9 June 2010 at 09:54:00

Creditors say KPMG documents may support potential claims

KPMG?s US? branch is facing a creditor investigation over whether it knew theextent of its client?s, PFF Bancorp Inc?s under-capitalisation, prior to thebanking crisis,Reutersreports.

Creditors of PFF Bancorp filed documents in the US Bankruptcy Court on Mondayseeking information from KPMG about the extent of the auditor?s knowledge aboutthe precarious financial position of the bank.

"Information in KPMG's possession may support potential claims against thirdparties and against KPMG itself, if, for example, it becomes apparent that KPMGknew or should have known at an early date of any overly-aggressive orinadequately-controlled loan practices of the (company)," the creditors wrote inthe request.

Creditors will attend a hearing on the matter on June 23.

Further reading:

PFFBancorp creditors seek probe of auditor KPMG