KPMG Gave First Republic a Clean Audit Weeks Before Bailout (1)

First Republic Bank—which came back from the brink Thursday thanks to a $30 billion emergency bailout from other lenders—shares a link with two other banks that foundered within the past week. All three used KPMG LLP as their auditor—and each had recently received a clean bill of health from the firm.

First Republic’s reprieve— from a combination of megabanks including JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc. and Wells Fargo & Co.—comes after its stock was hammered for days, wiping away billions in market value, sending customers fleeing.

KPMG signed off on the ...