Republic Bank—which came back from the brink Thursday thanks to a $30 billion emergency bailout from other lenders—shares a link with two other banks that foundered within the past week. All three used KPMG LLP as their auditor—and each had recently received a clean bill of health from the firm.
First Republic’s reprieve— from a combination of megabanks including JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc. and Wells Fargo & Co.—comes after its stock was hammered for days, wiping away billions in market value, sending customers fleeing.
KPMG signed off on the institution’s 2022 financial statements on Feb. 28 but didn’t raise any red flags that the bank’s survival was at risk.
Source: KPMG Gave First Republic a Clean Audit Weeks Before Bailout