Audit committee members accused of ignorance when it comes to off-balance sheet structure
Audit committees don’t understand the off-balance sheet structures that are blowing holes in company balance sheets, investors have insisted.
The comments, from the Association of British Insurers, are some of the strongest criticisms of the profession’s role during the credit crunch.
Investment banks have been forced to bring tens of billions of pounds back onto balance sheets as the so-called structured investment vehicles have creaked under the strain of the sub-prime collapse.
Peter Montagnon, director of investment affairs of the Association of British Insurers, said that people were not sufficiently aware that some of the vehicles existed.
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