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KPMG in the spotlight over Silicon Valley Bank, Signature Bank audits

Erik Gordon, professor at the University of Michigan’s Ross School of Business: 'The timing is spectacularly embarrassing for KPMG'

By

Jonathan Weil

and

Jean Eaglesham

KPMG signed the audit report for Silicon Valley Bank’s parent, SVB Financial Group, on 24 February. Regulators seized the bank on March 10 after a surge of withdrawals threatened to leave it short of cash
KPMG signed the audit report for Silicon Valley Bank’s parent, SVB Financial Group, on 24 February. Regulators seized the bank on March 10 after a surge of withdrawals threatened to leave it short of cash Photo: Jeremy Moeller/Getty Images

Silicon Valley Bank failed just 14 days after KPMG gave the lender a clean bill of health. Signature Bank went down 11 days after the accounting firm signed off on its audit.

What KPMG knew about the two banks’ financial situation and what it missed will likely be the subject of regulatory scrutiny and lawsuits.

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