FDIC settles with PwC on audits of crisis-era bank failure

The Federal Deposit Insurance Corporation said on Friday it agreed to a $335 million settlement with PricewaterhouseCoopers LLP for professional negligence claims it brought related the audits of Colonial Bank which failed in 2009. Colonial Bank, at the time had $25.5 billion in assets and a loss to the Deposit Insurance Fund was estimated at $2.958 billion. The settlement comes after a federal judge held PwC liable for professional negligence for its audit of Colonial Bank after a bench trial and on July 2, 2018, awarded damages of $625 million to the FDIC for its losses. PwC had said it planned to appeal the verdict.

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