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3/16, 4:10 AM (Source: TeleTrader)
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PwC settles negligence lawsuit for $335M

The United States Federal Deposit Insurance Corporation (FDIC), as a receiver for Colonial Bank, has agreed to a $335 million settlement with PricewaterhouseCoopers LLP (PwC), the banking regulator announced.

Colonial Bank, which operated 346 branches with $25.5 billion in assets, failed in 2009 following the discovery of a banking fraud conducted by several top-level executives and other employees. It was the sixth-largest bank to fail in the US and the largest to close in 2009. PwC, which worked as the auditor for Colonial, was charged with professional negligence for not detecting the ongoing fraud.

"PricewaterhouseCoopers LLP and the Federal Deposit Insurance Corporation as Receiver for Colonial Bank have settled professional negligence claims brought by the FDIC-R against PwC to their mutual satisfaction," the professional services company said in its statement.

Breaking the News / MD