⁍ A federal appeals court said a U.S. accounting watchdog was not authorized to share confidential information about Ernst & Young LLP’s work for a failed bank.
⁍ The FDIC was the receiver for First NBC Bank, not its regulator, the 5th Circuit said.
– A federal appeals court has ruled that the Federal Deposit Insurance Corp is the real regulator of the failed First NBC Bank, not the accounting watchdog that was supposed to keep an eye on the firm that did the bank’s audits, Westlaw Today reports. A three-judge panel of the 5th US Circuit Court of Appeals ruled 2-1 that the Public Company Accounting Oversight Board wasn’t authorized to share confidential information about Ernst & Young’s work for the failed bank with the FDIC. The court said a New Orleans federal judge had misinterpreted the law that allows the board to share information with an audit target’s regulator. The FDIC was the receiver for First NBC Bank, not its regulator, the 5th Circuit said.
Source: https://www.reuters.com/article/banking-fdic-appeal/5th-circ-says-fdic-was-not-defunct-banks-regulator-idUSL1N2HI029