Big 4: Too Big to Fail?
Or, as Jim Peterson (pictured) suggests, Too Big to Save?
After following the proceedings at the U.S. Treasury’s Advisory Committee on the Auditing Profession, Peterson summarizes the clear and present perils: The Big Four are facing 27 legal cases with damage exposures above $1 billion, of which seven exceed $10 billion – with the estimated total between $100 and $140 billion. And says, “The large firms cling to their tactically sound but politically tone-deaf refusal to offer comprehensive data on their own financial condition, but the litigation potential to overwhelm their partners’ limited capital is unrebutted.”
Read about “futility in the face of catastrophic risk.”
