Reuters: Regulatory News: Failed Irish bank takes legal action against Ernst & Young

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Failed Irish bank takes legal action against Ernst & Young Nov 29th 2012, 15:22 DUBLIN | Thu Nov 29, 2012 10:22am EST DUBLIN Nov 29 (Reuters) - The former Anglo Irish Bank is taking legal action against Ernst & Young, the bank's auditors before the government decided to wind it down two years ago. Scandal-hit Anglo, now known as the Irish Bank Resolution Corp (IBRC), has been under investigation for fraud for the past four years and three former executives, including ex-chief Sean FitzPatrick, face charges next year. IBRC said the proceedings related to Ernst & Young's role as auditors at Anglo before the bank was nationalised in 2009 but would not give any more detail. "As this matter is now the subject of litigation, it would be inappropriate for the bank to comment further at this time," a spokesman for IBRC said in a statement. Anglo, whose collapse is expected to cost the Irish state at least 25 billion euros, has been investigated for allegedly giving clients loans to buy shares in the bank and for using deposits from another lender to mask large withdrawals. Ernst & Young, one of the world's "Big Four" audit and consulting firms, said it stood by its work at Anglo and had not yet been served with proceedings. It said it would defend itself against any action. "Although Ernst & Young is aware of proceedings issued by IBRC, we have not formerly been served with, nor have we received, a statement of claim setting out the details of IBRC's claim," the auditor said in a statement. "Without more detail it is difficult for us to comment further. We have consistently said we stand by the quality of our work performed in the Anglo audit and will vigorously defend any such proceedings." Link this Share this Digg this Email Reprints

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