Deloitte close to dollars 300m S&L settlement

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The Independent Online
NEW YORK (Reuter) - Deloitte & Touche, one of the world's big six accountancy firms, is close to an agreement to pay dollars 300m ( pounds 203m) to resolve charges related to its accounting services for failed savings and loan associations, the Wall Street Journal reported.

The firm performed auditing services for some of the largest savings and loan failures.

The Resolution Trust Corp has 15 lawsuits pending against the firm, while the US Federal Deposit Insurance Corp has three suits pending, the paper said.

The claims charge that the accounting firm issued clean audit opinions to insolvent institutions, the paper said.

The bulk of the agreement on the charges would be covered by insurance, but the firm's 1,400 partners may have to pay a portion of the settlement.

Lloyd's of London provides the firm's liability insurance, but the insurer set coverage limits after huge losses, the paper said.

Deloitte & Touche was formed by the worldwide merger of Deloitte Haskins & Sells and Touche Ross.

However, in the UK the firm of Deloitte split from the international practice and merged with Coopers & Lybrand.