We Bend Over For Our Clients!

Or is it "we look the other way?"

Ernst & Young Nixes Chinese Loans Report

By ELAINE KURTENBACH, AP Business Writer Mon May 15, 4:25 AM ET

SHANGHAI, China - International accounting firm Ernst & Young has withdrawn a report it issued earlier suggesting that China's banks were facing up to $911 billion in bad loans.

"Upon further research, Ernst & Young Global finds that this number cannot be supported, and believes it to be factually erroneous," Ernst & Young LLP said in a statement seen Monday on its Web site.

The accounting firm said the report had not gone through its usual internal review process before it was issued.

"We apologize that this erroneous report was issued," it said. "We sincerely regret any misleading views that the report conveyed."(>continued....)

Looks like E&Y wants to keep some of its Chinese banking clients.

Here at PTMG, we have an internal review process as well.  It goes something like this:

Josh (out loud): If we publish this report, are any of our clients going to get pissed off?

Josh (in Josh's head): Well maybe...

Josh (out loud): Well are any of the clients that are going to be pissed off good clients?

Josh (in Josh's head): Any client that gives PTMG money is a good client......

Josh (out loud): Okay, scrap the article, let's go for lunch.

You see, the key difference between the E&Y process and the PTMG process is that we scrap articles before they are read by the public.................

Comments

[Joseph Wang]

Ernst and Young withdrew the report because they couldn't add right. They literally took $225 billion and added it twice.

I blogged on this the day after the report came out.