PNC accounting fallout spreads (would be Riggs purchaser)

[Snazzy]

PNC accounting fallout spreads

By Thomas Olson
TRIBUNE-REVIEW
Sunday, September 26, 2004


Fallout from PNC Financial Services Group's accounting scandal about its 2001 disposal of sour corporate loans has spread -- not over the Pittsburgh institution, but the world's largest insurer and the nation's second-largest accounting firm.

American Insurance Group is facing federal charges of securities-law violations for its role in structuring the partnerships that allowed PNC to remove $762 million in bad loans from its books that year. The corporation widely known as AIG was notified of civil charges by the Securities and Exchange Commission on Tuesday and had 30 days to respond.

The accounting firm Ernst & Young has been the target of an investigation by the SEC for blessing PNC's convoluted loan accounting while PNC's outside auditor in 2001, according to sources familiar with the investigation.

...

Meanwhile, PNC is still trying to close another controversial transaction: the $779 million purchase of scandal-marred Riggs National Bank in Washington, D.C.

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http://pittsburghlive.com/x/tribune-review/business/s_255002.html

(one big happy crime family)