Ernst & Young is one of two audit giants facing fresh scrutiny from the accountancy watchdog over the segregation of client assets.
The Accountancy & Actuarial Discipline Board (AADB) yesterday said it had begun a second probe into Ernst & Young's role as auditor to Lehman Brothers International (Europe) - the bank whose collapse in September 2008 triggered a global financial meltdown, writes the Telegraph.
Meanwhile, PricewaterhouseCoopers is also being assessed over its audit role at JP Morgan Securities, the US bank the FSA fined more than £33m in June for failing to ring-fence client cash balances from those held by its parent, JP Morgan Chase.
Both AADB investigations relate to the FSA's clampdown on banks and other financial institutions over their segregation of client assets.
Abramovich's Millhouse threatens legal action over Irish Nationwide bailout
Millhouse, Roman Abramovich's asset management company, has lashed out at the Irish government and given warning of "huge reputation loss" and possible legal action if it continues to push it to foot part of the bill to bail out Irish Nationwide Building Society.
The warning comes after Brian Lenihan, the Irish finance minister, said that subordinated bondholders of two state-controlled Irish lenders - Irish Nationwide Building Society, or INBS, and Anglo Irish Bank - should make a "significant contribution toward meeting the costs" of a planned government bailout, writes the Telegraph.
Abramovich's asset management company, Millhouse LLC, would be among the first in line to shoulder INBS's burden if Lenihan gets his way.
Achievements, charity work and other happy snippets
Laughable excuses for persisting
Spent 56 years at Schroders
Warns on profits