Ernst & Whinney (now Ernst & Young) reached an out-of-court settlement for $118 million with AIB Group, Ireland 's largest bank and administrator of the Insurance Corporation of Ireland. AIB accused Ernst of negligence when the bank discovered that an insurance company, audited by Ernst, that it had purchased just 12 months previously faced serious and unexpected losses on its underwriting business.
Now if the auditors were guilty of negligence in this case how on earth can they not be guilty in what seems a far far more straightforward case in respect of Anglo Irish Bank.?
People should read the Dail debates and aftermath on the ICI scandal to see that the government has learned nothing. Fianna Fail opposed the ICI bailout on the following grounds...'the taxpayer should not carry the burden of losses made by a private company'. Yet over 20 years later Fianna Fail does exactly that for amounts that make the ICI figures look like petty cash.
One hope...if the auditors were made carry some of the can in 1985 why not now?