PwC, E&Y clinch lucrative TARP contracts
US Treasury has recruited big four firms PwC and E&Y in its emergency buyouts of toxic assets
The
US treasury has announced it has recruited big four firms
PricewaterhouseCoopers (PwC) and Ernst & Young (E&Y) to help in the
emergency buyouts of toxic assets from struggling financial institutions by
providing ‘accounting and internal controls services needed to administer the
complex portfolio of troubled assets’, including whole loans and mortgage-backed
securities.
The treasury chose the two firms from a pool of 12 and the initial orders for
PwC and E&Y are worth $191,469.27 and $492,006.95, respectively.
The contracts were awarded as part of the government’s new $700bn Troubled
Asset Relief Program (TARP) to bail out financial companies lumbered with assets
degraded by falling US home prices,
Agence
France Presse reports.
The treasury said PwC would help the department establish a ‘sound internal
control posture’ and E&Y would provide general accounting support and expert
accounting advice.