Jobaaj Stories
In a recent investor action filed in federal court in San Francisco, KPMG (SVB auditor) has sued. Other defendants include Goldman Sachs Group, Morgan Stanley, Keefe Bruyette & Woods, and Bank of America.
Defendants are the name given to Silicon Valley Bank CEO Greg Becker and several bank officers and directors.
KPMG has been sued for alleged misstatements that led to the failure of Silicon Valley Bank(SVB), Bloomberg reported. The complaint alleges that KPMG approved SVB's annual report. The suit claimed that despite overviewing SVB reducing liabilities and decreasing deposits (a $25 billion decline in the last 9 months), KPMG approved it.
According to the suit, it permitted the annual report two weeks before the failure. It is apparently the first complaint to target Silicon Valley Bank's auditors and underwriters.
As the complaint stated, the defendants concealed the existent exposure. They did this by misrepresenting the company’s balance sheet and liquidity position.
The failure of Silicon Valley Bank was the largest since the 2008 financial crisis. The world saw SVB fail last month due to bank runs and other reasons. SVB's parent business filed for Chapter 11 bankruptcy as a consequence of this.
-Kritika Singhal
