Embarrassment for E&Y in China loans report
Firm cannot verify data in report
Big Four firm Ernst & Young has suffered acute embarrassment in China
after it admitted a report it issued on the country’s bad loans was ‘factually
The much-anticipated report, which had to be withdrawn, wrongly estimated
Chinese bad loans at more than $900bn (£478bn).
China’s Central Bank called the report ‘ridiculous’.
The country’s banking regulator put China’s bad loans at $164bn (£87bn), only
one fifth of the estimate given by Ernst & Young.
Ernst & Young said in a statement to Reuters that it would do its best to
avoid any repeat of the errors.