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PwC reduces damages in Colonial Bank failure

Tammy Whitehouse | March 20, 2019

After appealing a negligence finding related to audit issues at the failed Colonial Bancgroup, PwC managed to cut its damages almost in half in a settlement with the Federal Deposit Insurance Corporation (FDIC).

The FDIC, acting as a receiver for Colonial Bank, said it settled professional negligence claims with PwC in the amount of $335 million. That’s a few dollars less than the $625.3 million that U.S. District Court in Alabama said PwC should pay when it issued its ruling in December.

Colonial Bank was among the 25 largest banks in the United States with assets of $26 billion when it failed in August 2009. A post-mortem examination determined accounting fraud carried out with one of the bank’s largest customers, Taylor, Bean Whitaker Mortgage Corp., went...

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