PracticeAuditCreditors seek documents from KPMG following bank’s collapse

Creditors seek documents from KPMG following bank's collapse

Creditors say KPMG documents may support potential claims

KPMG’s US’ branch is facing a creditor investigation over whether it knew the
extent of its client’s, PFF Bancorp Inc’s under-capitalisation, prior to the
banking crisis,
Reuters
reports
.

Creditors of PFF Bancorp filed documents in the US Bankruptcy Court on Monday
seeking information from KPMG about the extent of the auditor’s knowledge about
the precarious financial position of the bank.

“Information in KPMG’s possession may support potential claims against third
parties and against KPMG itself, if, for example, it becomes apparent that KPMG
knew or should have known at an early date of any overly-aggressive or
inadequately-controlled loan practices of the (company),” the creditors wrote in
the request.

Creditors will attend a hearing on the matter on June 23.

Further reading:

PFF
Bancorp creditors seek probe of auditor KPMG

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