PwC Negligent in Colonial Bank Failure, Says Judge

The Wall Street Journal reported a federal judge ruled that PwC was negligent, resulting in one of the largest bank failures of the financial crisis.

According to the Journal, PwC violated auditing rules and didn’t take steps that could have detected a $2 billion fraud scheme that contributed to the 2009 failure of Alabama’s Colonial Bank. This opens the accounting firm to millions of dollars in potential damages, the Journal reported.