US RSM firm owner posts smaller loss
US RSM firm owner reduces its losses after winding down its problematic mortgage business.
RSM’s US firm’s parent H&R Block has reported a smaller quarterly loss as
it recovers from its sub-prime issues and focuses on tax.
The company, of which RSM McGladrey is a part and which is the largest US tax
preparer, had high-profile issues with sub-prime mortgages, issues which partly
explained why it could not bail out troubled former UK RSM firm Robson Rhodes
last year, which eventually became part of Grant Thornton.
The company’s loss was 56% lower than the previous year for the first
quarter, at $132.7m. The loss last year for the same quarter was $302.6m,
Reuters
reported.
H&R Block often loses money in the first quarter since it is outside the
main tax filing season.
Further Reading:
An earlier version of this story suggested that H&R Block was the US
member firm of the RSM network. In fact, RSM McGladrey is the US member firm of
the RSM network. RSM McGladrey is owned by H&R Block. We apologise for any
misunderstanding that may have arisen.