The Economic Affairs Committee of the House of Lords questioned representatives of the four largest audit firms on the issue of “going concern” opinions during the financial crisis. In particular, why were there none for the banks that failed, were bailed out, or were nationalized?

The answer the Lord’s received was, in one word, “Astonishing!”

The leadership of the Big 4 audit firms in the UK admitted that they did not issue “going concern” opinions because they were told by government officials, confidentially, that the banks would be bailed out.

How could I been so naive? If it happened in the UK, why not in the US?

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