BANKING & FINANCE - March 5, 1992
From Times Staff and Wire Reports
Ernst & Young Ordered to Turn Over Documents: U.S. District Judge Royce C. Lamberth ordered the accounting firm to turn over what could total a million documents to federal regulators probing the accounting firm’s work for 23 troubled savings and loan institutions. “Accounting firms may have been responsible for many of the abuses which have led to this country’s savings and loan crisis,” Lamberth wrote in the decision compelling the firm to comply with the Office of Thrift Supervision’s subpoena. “In fact, OTS advised the court that approximately one-third of the 690 financial institutions that have failed were audited by Ernst & Young or its predecessor,” Arthur Young, Lamberth wrote.
