E&Y defends role at Barings Bank
Big Five firm Ernst & Young was this week defending its role as liquidator of Barings Bank as a US group of creditors moved to displace it.
E&Y is suing former auditors Coopers & Lybrand and Deloitte & Touche Singapore, the auditors of the collapsed merchant bank, for Pounds 1bn for negligence to cover the Pounds 800m lost by rogue trader Nick Leeson.
The case is due to start in the High Court on Monday but this week faced a challenge by a group known as the 1986 bondholders, also known as vulture funds.They want KPMG to replace E&Y as their representative.
Industry observers this week told Accountancy Age they would be surprised if the Court were to remove E&Y from the case.
If the court rules in favour of the challengers the case, which has already been postponed from Feburary to 18 June due to a plea for more time by Deloittes, will face yet another lengthy postponement.
However, many believe the three Big Five firms involved are likely to reach an out-of-court settlement.
Links
Barings court battle may be averted