KPMG to countersue Fannie Mae

KPMG is set to countersue US mortgage giant Fannie Mae after being hit with a $2bn (£1bn) lawsuit for negligence and breach of contract as its auditors.

Fannie Mae had sued auditors KPMG for its role in the mortgage firm's multibillion-dollar accounting irregularities, however, a spokesman for KPMG said it was pursuing its own claims, according to Reuters. It is currently unclear as to the nature of the audit firm's claims.

Fannie Mae had sued KPMG for negligence over its part in the mortgage giant's financial restatements.

'It is difficult to imagine a clearer case of accounting malpractice,' Fannie Mae said in its complaint.

Further reading:

Fannie Mae spends $1bn on restatements

Fannie Mae fined $400m for accounting scandal

No criminal charges for Fannie Mae