Skip to main content

PwC Ordered to Pay $625.3M for Colonial Bank Failure

Phil Hall
Jul 03, 2018
The Federal Deposit Insurance Corporation (FDIC) has reached a settlement with HomeStreet Bank of Seattle for violations of the Real Estate Settlement Procedures Act

PricewaterhouseCoopers LLP (PwC) has been ordered by a federal court to pay the Federal Deposit Insurance Corp. (FDIC) $625.3 million in damages for failing to uncover the fraud that led to the August 2009 closure of Colonial BancGroup Inc.
 
According to a Reuters report, the Montgomery, Ala.-based Colonial was once among the 25 largest banks in the nation. U.S. District Judge Barbara Rothstein determined that PwC was liable for failing to uncover the longstanding fraud between Colonial and the mortgage lender Taylor, Bean & Whitaker, which also failed in August 2009. The FDIC, which took over as receiver for Colonial Bank, sued PwC after previously reaching a settlement with Crowe Horwath, Colonia’s internal auditor.
 
The $625.3 million judgment covered PwC’s audits of Colonial from 2003 to 2005 and in 2008, and a trial for the 2006 and 2007 audits has yet to be scheduled. In arguing its case in court, PwC stated the FDIC could recover $306.7 million at most, adding no damages were justified because Colonial employees had interfered with its audits.
 
“We intend to pursue an appeal of this matter at the earliest opportunity,” said the company’s attorney, Phil Beck, in a statement provided by PwC.

 
Published
Jul 03, 2018
loanDepot And mellohome Introduce Home Services Bundle

loanDepot, Inc. and its sister company mellohome are launching a proprietary bundle of home buying and selling services.

Industry News
Jul 30, 2021
Gateway Mortgage Surpasses 165 Mortgage Centers With 10 New Additions

Gateway Mortgage reported significant growth in the company, prompting it to open 10 new locations across Colorado, Idaho, Oklahoma, Texas, Oregon, and Wyoming.

Industry News
Jul 30, 2021
FHFA Requires 30-Day Notice Prior To Eviction

Wednesday, the Federal Housing Finance Agency (FHFA) announced that tenants of multi-family properties must be given 30 days notice to vacate before the tenant is required to leave the premise.

Industry News
Jul 29, 2021
Houston-Based Stewart Acquires Title First Agency

Ohio-Based Agency Has 20 Offices And Operates in 32 States

Industry News
Jul 28, 2021
Planet Home Lending Reports Total Origination Volume Of $6.8B In Q2 2021

Planet Home Lending's total origination volume reached $6.8 billion in Q2 2021, up 77% from $3.9 billion in Q2 2020.

Industry News
Jul 22, 2021
FHFA Ends Controversial Refinance Fee

The FHFA announced that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries, starting August 1, 2021.

Analysis and Data
Jul 19, 2021