Børsens News Service in English
Capinordic Auditors “Got Off Lightly” After Collapse, Director Claims
04-08-2010
12:15
PricewaterhouseCoopers should not have been absolved of blame in the case of Capinordic Bank’s collapse, one of the bank’s former directors has told Borsen.
Ole Vagner, who was also a major shareholder in the now-defunct bank, told Borsen that a legal review should not have ignored the question of how the auditors could have approved Capinordic’s accounts and reports in the period leading up to its February 2010 collapse.
Six months ago the Copenhagen-based bank announced that it was suspending all payments in the face of unsustainable losses. It was subsequently taken over by the state body designed to support banks and other financial institutions, Financial Stability. Danish depositors were covered by the state’s guarantee scheme.
On Tuesday a legal review commissioned by Financial Stability raised strong criticism of the bank’s management and lending policy. However, its auditors remained free of criticism. The review will pave the way for legal claims related to losses sustained by the bank.
Ole Vagner, who was also a major shareholder in the now-defunct bank, told Borsen that a legal review should not have ignored the question of how the auditors could have approved Capinordic’s accounts and reports in the period leading up to its February 2010 collapse.
Six months ago the Copenhagen-based bank announced that it was suspending all payments in the face of unsustainable losses. It was subsequently taken over by the state body designed to support banks and other financial institutions, Financial Stability. Danish depositors were covered by the state’s guarantee scheme.
On Tuesday a legal review commissioned by Financial Stability raised strong criticism of the bank’s management and lending policy. However, its auditors remained free of criticism. The review will pave the way for legal claims related to losses sustained by the bank.
*****||*****Capinordic Auditors “Got Off Lightly” After Collapse, Director Claims*****||*****PricewaterhouseCoopers should not have been absolved of blame in the case of Capinordic Bank’s collapse, one of the bank’s former directors has told Borsen.*****||*****
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