Fannie Mae Accused Of Deceiving KPMG, Its Former Auditor

Washington Post ^ | April 21, 2007 | By David S. Hilzenrath

[DeaconBenjamin2]

Auditor KPMG this week sued its former client Fannie Mae, alleging that the giant mortgage funding company deceived it for years, damaging KPMG's reputation and exposing it to the threat of substantial liability.

Both firms have been sued by investors since Fannie Mae was revealed to have overstated profits by billions of dollars. For years, KPMG put its stamp of approval on financial statements that Fannie Mae now acknowledges were flawed.

In court papers filed in U.S. District Court for the District of Columbia, KPMG also disclosed that it has become the subject of regulatory inquiries.

The accounting firm says it was relying on Fannie Mae to tell the truth about its finances when KPMG issued clean audit reports year after year "in the absence of further analysis, review procedures, and/or modifications to the financial statements."

"Fannie Mae repeatedly, deliberately, and recklessly provided misleading information to KPMG," the lawsuit says.

The fees KPMG charged Fannie Mae were "significantly lower than the fees that would have been charged had Fannie Mae disclosed all material information," KPMG added in the lawsuit.

[Choose Ye This Day]

And where is the apoplectic rage and indignation that the MSM spewed at Enron?

FannieMae is probably a bigger debacle, but it doesn’t fit the mold of an evil corporate empire.

[A Strict Constructionist]

What is the definition of Audit?/s

[ex-Texan]

Big DUH! . . . Brewing mortgage company scandals will make Enron look like a minor event. Check this out:

http://www.freerepublic.com/focus/f-news/1820597/posts?page=126#126

[bvw]

Another cesspool which Gorelick oversaw.

[blam]

"FannieMae is probably a bigger debacle, but it doesn’t fit the mold of an evil corporate empire."

I think some Black Democrats are involved...so, it's okay.

[Digger]

Sure. It all goes back to that repugnant Klintoon administration.

[piasa]

6KPMG Gave SVB, Signature Bank Clean Bill of Health Weeks Before Collapse
WSJ via CFP ^ | 3/20/2023 | Jonathan Weil
Posted on 3/20/2023, 7:15:11 PM by Presbyterian Reporter

Silicon Valley Bank failed just 14 days after KPMG LLP gave the lender a clean bill of health. Signature Bank went down 11 days after the accounting firm signed off on its audit. What KPMG knew about the two banks’ financial situation and what it missed will likely be the subject of regulatory scrutiny and lawsuits. KPMG signed the audit report for Silicon Valley Bank’s parent, SVB Financial Group SIVB Regulators seized the bank on March 10 after a surge of withdrawals threatened to leave it short of cash. .../snip