Anglo Irish Bank to sue E&Y
Legal action pertains to former auditor’s role 'pre-nationalisation'
By Gaurav Sharma | CFO UK | Published 19:06, 29 November 12
Anglo Irish Bank is taking legal action against its former auditor Ernst & Young (E&Y), it was revealed on Thursday.
A spokesperson for the bank said it had initiated legal proceedings against E&Y on Tuesday. While unprepared to discuss the allegations in detail, he said the legal action pertains to "the role of Ernst & Young as auditors to Anglo Irish Bank Plc pre-nationalisation".
According local media, this would be the first instance when an Irish banking institution has taken legal action its former auditor in wake of losses booked during the global financial crisis and a bursting of the country’s property bubble.
Anglo Irish Bank was nationalised in 2009 when it suffered the largest corporate loss in Irish history. The banks operations were assumed by the Irish Bank Resolution Corporation with cost to the country’s taxpayers exceeding £20 billion.
E&Y said it is yet to receive formal notification from Anglo Irish Bank but that it would "vigorously defend" itself against the bank's claims.
"We have consistently said we stand by the quality of our work performed in the Anglo Irish Bank audit and will vigorously defend any such proceedings," the firm said in a statement.
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