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KPMG CRISIS RECALLED IN WALL STREET JOURNAL
February 15, 2007
The Wall Street Journal has a page-1 piece today on accounting giant KPMG's near-death experience. It tells how Timothy Flynn took the reins of the firm when the former chairman stepped down after being diagnosed with a fatal brain tumor. Only three days later, Mr. Flynn was in conference with the Justice Department trying to keep the firm from being indicted for its tax-shelter dealings.
It's an interesting account of how KPMG narrowly avoided being put out of business by its tax shelter products. It certainly is a different firm than it was in 2005.
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Comments
What, exactly, do you mean by: "It certainly is a different firm than it was in 2005"? Is this comment in praise or in condemnation of KPMG? Would you explain?
Posted by: what? | February 16, 2007 10:00 PM
It's neither praise or condemnation. It's a different firm because of some drastic changes required by the deferred prosecution agreement. In Des Moines, for example, a large part of the tax practice had to leave the firm, including the group that served corporate executives and wealthy individuals. The agreement required KPMG to abandon several service markets -- it's not clear in all cases why.
The books are still open on how KPMG will do without these specialties.
Posted by: Joe Kristan | February 16, 2007 10:27 PM