Inquiry Assails Accounting Firm In Mortgage Lender's Fall

New York Times:

A sweeping five-month investigation into the collapse of one of the nation's largest subprime lenders points a finger at a possible new culprit in the mortgage mess: the accountants.

New Century Financial, whose failure just a year ago came at the start of the credit crisis, engaged in "significant improper and imprudent practices" that were condoned and enabled by auditors at the accounting firm KPMG, according to an independent report commissioned by the Justice Department.

Read the whole story: New York Times

Comments

[LammertMacroeconomics]

NEW CENTURY, the instrument of the America's New Financial Engineers

For the quantum fractal macroeconomic scientist, New Century, valued today at eight tenth's of a penny has great scientific worth. The Heisenberg uncertainty principle precludes further comment.

[FogBelter]

The activities that Arthur Anderson was engaged in on behalf of ENRON was standard operating procedures within the Accounting Industry. If the rest of the Accounting Industry continued business as usual after the ENRON debacle without reform ... we have a whole bunch of bad news on the horizon.

This could be really bad.

[WIpatriot]

The accountants, of course!