Treasury hires PricewaterhouseCoopers, Ernst & Young to help with bailout plan

WASHINGTON (Thomson Financial) - The accounting firms of PricewaterhouseCoopers and Ernst & Young have been hired by the Treasury Department to help the government implement the $700 billion Wall Street bailout program.

Treasury said today it signed blanket contracts last week that will allow both firms to perform tasks on an as-needed basis related to the implementation of the bailout program. Both contracts last through September 2011.

PricewaterhouseCoopers will act as the auditor for the program, under which Treasury will buy billions of dollars worth of preferred bank stock in a move to help recapitalize struggling banks, and will also buy illiquid assets from banks. Treasury's initial order for auditing work from this firm totals $191,000.

Ernst & Young will provide general accounting support, and Treasury's initial order from that firm totals $492,000.

Treasury last week said it would buy $250 billion worth of preferred bank stock, and yesterday it announced a streamlined procedure by which banks can apply to participate in this program. US Treasury Secretary Henry Paulson said that aside from the nine largest US banks, many other small and medium-sized banks have expressed an interest in the program.

Source: Thomson Financial News