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PwC to Pay $335 Million in Settlement Over Audits of Failed Bank

March 15, 2019, 7:32 PM

PwC agreed to pay $335 million to settle Federal Deposit Insurance Corp. allegations that the firm was negligent in its audits of Colonial BancGroup Inc., an Alabama bank that collapsed after the 2008 financial crisis.

The agreement, announced in a March 15 statement by the FDIC, closes a difficult chapter for PwC with the U.S. agency that could have been even worse.

In July, a federal judge ordered the accounting firm to pay $625 million after ruling that it had failed in its audits of the bank from 2003 to 2005, and for 2008. PwC didn’t design the audits to...

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