Parliament Website

Behaviour Of Bank Auditors

EDM number 2263 in 2007-08, proposed by Austin Mitchell on 16/10/2008.
Categorised under the topic of Financial institutions.

That this House is concerned to find that the banks which have failed in the US, Britain and the EU all had clean bills of health from auditors who are dependent for their appointment and fees on companies and their directors; notes that in all these cases auditors also acted as consultants to the companies and reported on the transactions they created, resulting in a financial dependency which inhibited auditors from doing effective audits or drawing public attention to the questionable mixture of toxic debts, off balance sheet accounting, and dubious asset values which brought the banks down; points out that in 2007 PriceWaterhouseCoopers charged Northern Rock £2.4 million (2006: £1.8 million) of which £1 million (2006: £1 million) was for consultancy, KPMG charged Bradford and Bingley £1.4 million (2006: £1.7 million) of which £0.8 million (2006: £0.8 million) was for consultancy, KPMG charged HBOS £11.4 million (2006: £11.2 million) of which £3.4 million (2006: £4.4 million) was for consultancy, Deloitte and Touche charged RBS £31.4 million (2006: £23 million) of which £14.2 million (2006: £11.1 million) was for consultancy and PriceWaterhouseCoopers charged Lloyds TSB £14.6 million (2006: £17 million) of which £1.5 million (2006: £2 million) was for consultancy; and therefore suggests that audits of banks should be directly conducted by the regulators on a real time basis and external auditors of banks must not act as consultants to the banks or the directors.

This motion has been signed by a total of 30 MPs.

Austin Mitchell16/10/2008Great GrimsbyLabourProposed
Jim Cousins16/10/2008Newcastle upon Tyne CentralLabourSeconded
Kelvin Hopkins16/10/2008Luton NorthLabourSeconded
Andrew George16/10/2008St IvesLiberal DemocratSeconded
Bob Russell16/10/2008ColchesterLiberal DemocratSeconded
Mike Hancock20/10/2008Portsmouth SouthLiberal DemocratSeconded
Lynne Jones21/10/2008Birmingham, Selly OakLabourSigned
John McDonnell21/10/2008Hayes and HarlingtonLabourSigned
Jeremy Corbyn21/10/2008Islington NorthLabourSigned
David Taylor21/10/2008North West LeicestershireLabourSigned
Rudi Vis21/10/2008Finchley and Golders GreenLabourSigned
John Leech21/10/2008Manchester, WithingtonLiberal DemocratSigned
Angus MacNeil21/10/2008Na h-Eileanan an IarScottish National PartySigned
Dai Davies21/10/2008Blaenau GwentIndependentSigned
Jim Devine22/10/2008LivingstonLabourSigned
Alasdair McDonnell22/10/2008Belfast SouthSocial Democratic and Labour PartySigned
John Pugh23/10/2008SouthportLiberal DemocratSigned
Brian Jenkins23/10/2008TamworthLabourSigned
Neil Gerrard23/10/2008WalthamstowLabourSigned
Paul Rowen23/10/2008RochdaleLiberal DemocratSigned
Albert Owen27/10/2008Ynys MLabourSigned
Jim Dobbin27/10/2008Heywood and MiddletonLabourSigned
Alan Simpson28/10/2008Nottingham SouthLabourSigned
Ann Cryer29/10/2008KeighleyLabourSigned
Bill Etherington30/10/2008Sunderland NorthLabourSigned
Vincent Cable03/11/2008TwickenhamLiberal DemocratSigned
David Maclean04/11/2008Penrith and The BorderConservativeSigned
Edward Davey06/11/2008Kingston and SurbitonLiberal DemocratSigned
Andrew Stunell10/11/2008Hazel GroveLiberal DemocratSigned
Eric Illsley11/11/2008Barnsley CentralLabourSigned

Download raw data as csv or xml.