SEC charges KPMG auditors over audit of failed Nebraska bank

WASHINGTON Wed Jan 9, 2013 11:34am EST

WASHINGTON Jan 9 (Reuters) - U.S. securities regulators on Wednesday filed civil charges against two auditors at accounting giant KPMG, alleging they failed to properly scrutinize the books of a Nebraska bank that collapsed under the weight of loan losses during the financial crisis.

The Securities and Exchange Commission said it is seeking to censure KPMG partner John Aesoph and senior manager Darren Bennett, who were involved in the audit of the now-defunct TierOne Bank. It may also seek to bar the two, either temporarily or permanently, from practicing before the commission.

The SEC previously charged three bank executives with understating losses in the crisis. Tow of the three have settled the case and the third is still fighting the charges.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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