No legal action against PwC for Rock audit

PricewaterhouseCoopers will not face legal action for its audit of Northern
Rock, the troubled bank’s top brass has announced.

Earlier this year, Northern Rock commissioned a probe into PwC’s audit of the
bank and on the findings of KPMG Forensic decided not to drag the auditors
through the courts on a negligence claim. There were insufficent grounds to take
the former directors of the bank to court, Northern Rock added.

Northern Rock said in a
statement
to the City: ‘A review of the conduct of the previous board in respect of
funding and liquidity has been undertaken with the assistance of external
advisors, Freshfields and KPMG Forensic.

The board has concluded that there are insufficient grounds to proceed with
any legal action for negligence against the former directors, and has no
intention of bringing any such action. The board has also completed a similar
review in respect of the company’s auditors and has determined that no action is
warranted.’