Watchdog to examine KPMG’s role in bank failure

An investigation into the role played by KPMG in the failure of HBOS should be undertaken following recent findings highlighting the bank’s flawed audits, according to a senior MP.

The chief executive of the Financial Reporting Council, Stephen Haddrill, was called to reconsider his previous view that there was no case for a formal investigation of KPMG and others involved in the failed bank’s audit.

Andrew Tyrie, chairman of the Treasury select committee, was the one to make the investigation demand, as reported by The Times.

“Act quickly to maintain its public and professional credibility,” warned Tyrie on his letter to Haddrill, by releasing the need for investigation.