The Times have quite the story today: http://www.irishtimes.com/newspaper/...327259386.html
Ernst And Young have issued a brief statement:The State-owned bank, now called Irish Bank Resolution Corporation, said the case relates to the firm’s role as auditors before the bank’s nationalisation but it would not elaborate on the details of the action. The bank issued the legal proceedings on Tuesday, according to High Court records.
Ernst & Young signed off the bank’s accounts for the year to the end of September 2006 on December 5th, 2006. These accounts are believed to be crucial to the bank’s legal action.
Ernst & Young has been criticised for failing to spot the full extent of the borrowings of Anglo chairman Seán FitzPatrick, which had been concealed by the bank for eight years.
IBRC said the action was part of its continuing work to wind down the former Anglo and Irish Nationwide, and deal with “legacy issues across every area of those institutions” before and after their nationalisation.
Big move this. It's the first time an Irish bank have taken action against an audit firm in this manner, and I can't think of another bank in Europe that's done it either. The argument's going to be that the firm failed in their duty of care to the Anglo stakeholders by failing to spot the shambles the books were in despite auditing them for years and charging close to €10 million.Although Ernst & Young is aware of proceedings issued by IBRC [formerly Anglo Irish Bank], we have not formally been served with nor have we received a statement of claim setting out the details of IBRC’s claim
If nothing else, if it goes ahead it will bring to light much of the goings on in Anglo's finance team, answering a lot of the questions people have around that period. It'll probably be of more use than any Govt run banking inquiry would be.