FDIC Sues Accounting Firm: Federal Deposit Insurance...
From Times Staff and Wire Reports
FDIC Sues Accounting Firm: Federal Deposit Insurance Corp. filed a suit in U.S. District Court in Dallas, charging the accounting firm of Ernst & Young with conducting negligent audits of a failed Dallas-based thrift in a suit that seeks at least $560 million in damages. In the suit, the FDIC said Arthur Young & Co., which merged with Ernst & Whinney last year, failed to cite the S&L;’s financial weakness in audits of its 1984 and 1985 performance. The S&L; was declared insolvent and seized on Sept. 12, 1986.
