Concern for KPMG Extends to E.U.

Regulators in Europe, like their counterparts in the United States, don't want to see the Big Four shrink to a Big Three.

European regulators are apprehensive about the potential global consequences of a Department of Justice investigation into U.S. tax practices of KPMG, according to the Financial Times.

The regulators are particularly concerned that the outcome could damage an already-concentrated audit market by taking out another major player, added the FT. Most likely, they would not insist that the U.S. government avoid pressing criminal charges, but the FT reported widespread fear that KPMG could be the next Arthur Andersen, which collapsed following obstruction-of-justice charges regarding its work for Enron Corp.

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