Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation’s banking system.
The FDIC insures deposits at the nation’s banks and savings associations, 5,406 as of December 31, 2018. It promotes the safety and
soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no
federal tax dollars—insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC’s Public Information Center
(877-275-3342 or 703-562-2200). PR-19-2019
March 15, 2019 Media contact:
David Barr
(202) 898-6992
dbarr@fdic.gov
For Immediate Release
FDIC Settles with PricewaterhouseCoopers LLP on Audits of a Failed Bank
The Federal Deposit Insurance Corporation as Receiver for Colonial Bank (FDIC) has announced a $335
million settlement with PricewaterhouseCoopers LLP (PwC) related to professional negligence claims brought
by the FDIC against PwC arising out of the audits of the failed Colonial Bank.
On December 28, 2017, the United States District Court for the Middle District of Alabama held PwC liable for
professional negligence in its audit of Colonial Bank and, on July 2, 2018, the district court awarded damages to
the FDIC on its claims. Previously, on April 3, 2018, the FDIC settled professional negligence claims against
Crowe Horwath LLP arising out of its internal audits of Colonial Bank for $60 million.
Colonial Bank of Montgomery, Alabama failed on August 14, 2009, with $25.5 billion in assets and a loss to
the Deposit Insurance Fund estimated at $2.958 billion as of December 31, 2017.
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The FDIC insures deposits at the nation’s banks and savings associations, 5,406 as of December 31, 2018. It promotes the safety and
soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no
federal tax dollars—insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC’s Public Information Center
(877-275-3342 or 703-562-2200). PR-19-2019
March 15, 2019 Media contact:
David Barr
(202) 898-6992
dbarr@fdic.gov
For Immediate Release
FDIC Settles with PricewaterhouseCoopers LLP on Audits of a Failed Bank
The Federal Deposit Insurance Corporation as Receiver for Colonial Bank (FDIC) has announced a $335
million settlement with PricewaterhouseCoopers LLP (PwC) related to professional negligence claims brought
by the FDIC against PwC arising out of the audits of the failed Colonial Bank.
On December 28, 2017, the United States District Court for the Middle District of Alabama held PwC liable for
professional negligence in its audit of Colonial Bank and, on July 2, 2018, the district court awarded damages to
the FDIC on its claims. Previously, on April 3, 2018, the FDIC settled professional negligence claims against
Crowe Horwath LLP arising out of its internal audits of Colonial Bank for $60 million.
Colonial Bank of Montgomery, Alabama failed on August 14, 2009, with $25.5 billion in assets and a loss to
the Deposit Insurance Fund estimated at $2.958 billion as of December 31, 2017.
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