E&Y to face Irish probe

ACCOUNTANCY giant Ernst & Young is to face an investigation into its alleged failure to audit the accounts of Anglo Irish Bank properly in the run-up to the financial crisis.

The Irish Chartered Accountants Regulatory Board (CARB) reported yesterday that it has found enough evidence to justify a probe into E&Y’s role regarding the bank’s disclosure of certain loans and financing operations.

In particular, the regulator will look into E&Y’s work on the lender’s 2008 accounts regarding its dealing with Irish Life & Permanent.

Both Anglo Irish and IL&P were bailed out by the Irish government, which expects to make a loss of some €38bn on the Anglo Irish rescue alone.

Dublin’s decision to guarantee its banks’ mountain of debt was instrumental in forcing the state to seek a bailout last year.