UK watchdog investigates KPMG's auditing of Co-op bank

LONDON Mon Jan 20, 2014 4:20am EST

LONDON Jan 20 (Reuters) - Britain's accounting watchdog said on Monday it has started investigating KPMG's auditing of the Co-op bank, which has been hit by a capital shortfall and drugs scandal involving it's ex-chairman.

"The Financial Reporting Council has launched an investigation... into the preparation, approval and audit of the financial statements of the Co-operative Bank plc, up to and including the year ended 31 December 2012," the watchdog said in a statement.