Factchecking the Murphmeister

They are the people who signed off the audits of the world’s banks in 2008 whilst knowing many were insolvent, and got away with it.

Hmm. You see, one of the things those Big4 accountants did was go to government and ask, well, if there\’s a run on these banks, then will the government stand behind them?

Because if you don\’t then we won\’t sign off on them as a going concern. And the government did indeed point over to the central bank and point out that that\’s one of the points of a central bank. To be lender of last resort to the banking system.

And thus were the banks signed off as going concerns.

And the central bank did indeed act as lender of last resort when the runs came. So the banks were indeed going concerns.

You\’d expect an accountant to know this but apparently Murphy R has forgotten his auditing.

4 comments on “Factchecking the Murphmeister

  1. To be fair to the incompetent one, an emphasis of matter paragraph detailing that the going concern nature of the bank was dependent on the BoE acting as a lender of last resort should have been included (Captain Hindsight alert!)

  2. Murphy never audited anything in any meaningful way… The Big Four took a look at him for full-time employment and wisely sent him packing.

  3. “To be fair to the incompetent one, an emphasis of matter paragraph detailing that the going concern nature of the bank was dependent on the BoE acting as a lender of last resort should have been included”

    Err, yes. It’s the only thing that could turn his statement from being factually incorrect to factually correct. Not much hindsight involved in that one, actually.

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