KPMG in $24m Settlement
US Court approval has been awarded for a $624m (£392) settlement that KPMG and Bank of America may reach with investors of Countrywide Financial Corp…
Bank of America would be responsible for the lion’s share – $600m – of the $624m settlement. The rest, $24m (£15m), would have to be paid by KPMG in respect of its audit work at Countrywide.
Bloomberg: The New York State Common Retirement Fund and five New York City pension funds claimed former Countrywide Chief Executive Officer Angelo Mozilo and other executives hid the fact that the company was fueling its growth by letting underwriting standards deteriorate.
The US settlement has been granted preliminary approval by a federal judge.
Lawyers for Bank of America were keen to point out that the settlement was by no means a concession that anything was done that violated securities law.
