Ernst & Young LLP has agreed to pay $125 million in restitution to federal bank regulators, which settles all charges relating to the firm's audits of the failed Superior Bank FSB.Without admitting any liability for its audits, E&Y agreed to pay the Office of Thrift Supervision $85 million and the Federal Deposit Insurance Corp. $40 million. These funds will be used to cover losses by Superior's receivership. The FDIC had accused E&Y of allowing the Hinsdale, Ill., thrift to use "incorrect" accounting for its subprime securitizations and residuals, which inflated Superior's assets and earnings. But federal courts ruled that the FDIC did not have standing to sue the accounting firm. "The decision to reach these settlements underscores our commitment to work cooperatively with the regulators," E&Y spokesman Charlie Perkins said. As part of the settlement, E&Y agreed to provide annual reports to the OTS on its audits of all OTS-supervised institutions and to adhere to stringent auditing standards, including rotation of lead audit partners. "We already have implemented changes to our audits of savings associations that comply with the OTS consent order, and we are voluntarily taking the extra step of implementing these changes throughout our bank audit practice," Mr. Perkins said.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
6h ago -
Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
9h ago -
While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
11h ago -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
11h ago -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
11h ago -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
July 11