The lawyer for accounting giant PwC teased a markedly different account of MF Global's collapse out of its former chief, Jon Corzine, in cross examination today in a $3 billion lawsuit that attempts to pin the blame on PwC. Lawyers for the administrator of MF Global's bankruptcy estate argue it was bad accounting advice by PwC that caused the company's collapse. They also blame a sudden shift in advice on how to account for the deferred tax asset that forced MF Global to report a large loss in September 2011, triggering a crisis in confidence about the heavily leveraged firm. The combination of the two set off the company's downward spiral, MF Global argues. PwC says its accounting advice was proper and MF Global executives, led by Corzine, made the decisions that caused the company's demise.

Source: Forbes March 10, 2017 23:29 UTC