City Accountants To Be Fined £20 Million

[Gromit]

// Deloitte had acted as adviser to MG Rover on its administration, but controversially also acted corporate advisers to the buyout group.
In its judgment, the tribunal said Deloitte’s conduct had “showed in some instances a persistent and deliberate disregard of the fundamental principles and statements of the ICAEW’s [Institute of Chartered Accountants England and Wales] code of ethics.

MG Rover collapsed in 2005 with the loss of 6,000 jobs after wracking up debts of £1.4bn, having been bought five years earlier from BMW for £10 by businessmen Peter Beale, Nick Stephenson, John Towers and John Edwards.
The so-called “Phoenix Four” were struck off as company directors for a combined 19 years in 2011, having shared £42m in pay and pensions after buying the company in 2000. //

Deloitte was recently fined $10 million by US authorities for money laundering.

Is the City full of crooks? Is more regulation needed?

[mikey4444]

More pigs with their noses in the swill...nice to see that the Feds are catching up with them at last !

[youngmafbog]

No, it is not full of crooks but it does have it's fair share as does any group of people.

I'm not sure how further regulation works, often these 'crooks' break the current law so why introduce more and penalize the law abiding by more red tape(which is what happens in the finance industry)

Rather than more regulation I think more competent bodies than the likes of the FSA and FED are required.

[Gromit]

Ymb

How about a regulation that bans an accountancy firm from representing both parties in a transaction. It seems like a clear conflict of interest and a reputable firm would not do it, but perhaps rather than assume these firms are run by gentlemen, we need laws banning such behaviour because we now know they are not.