sovereign debt

sovereign debt

PwC Must Face $1 Billion Lawsuit Over MF Global Advice

3d ago
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A federal judge on Wednesday ordered PricewaterhouseCoopers to face a $1 billion lawsuit claiming that its bad accounting advice was a substantial cause of the October 2011 bankruptcy of MF Global Holdings Ltd, a brokerage run by former New Jersey Governor Jon Corzine. U.S. District Judge Victor Marrero in Manhattan said PwC's advice on "repurchase-to-maturity" transactions through which Corzine bought $6.3 billion of European sovereign debt affected how MF Global implemented its strategy and in turn contributed to its alleged losses. Marrero wrote "This line of causation gives rise to a plausible claim that PwC proximately caused harm to MF Global." http://feeds.reuters.com/~r/reuters/businessNews/~3/89pcZMreA9w/story01.htm http://www.wochit.com