Co-op report criticises KPMG and regulator
KPMG and the financial regulator have been criticised in a report by MPs into Co-op Bank’s failed bid to buy 632 Lloyds branches last year.
The Treasury Committee said the black hole in Co-op Bank’s finances which halted the deal should have been discovered sooner.
“Each of the backstops – Co-op Bank itself, KPMG as its auditor and the FSA as its regulator – failed to uncover the bank’s capital shortfall,” it said.
KPMG said its audits had been “robust”.
The report by the Treasury Committee said it had found no sign of political meddling in the deal to sell the Lloyds branches – nicknamed Project Verde.
Lord Levene, former chair of banking shell NBNK which was competing with Co-op to buy the Lloyds branches, had alleged that the Treasury had pushed Lloyds to choose the Co-op Bank as preferred bidder.
Source: BBC- Co-op report criticises KPMG and regulator
