WASHINGTON -- Arthur Andersen & Co. has paid the Resolution Trust Corp. $65 million to settle government changes of professional negligence, an agency official said.
The RTC had filed a $400 million suit against the accounting firm accusing it of negligence in its auditing of Houston-based Ben Franklin Savings Association. That thrift collapsed in 1989 at a cost of $1 billion to the government.
The accounting firm reached a global settlement with the RTC.
Separately, the Office of Thrift Supervision announced that Arthur Andersen has agreed to follow certain reporting and other standards in its auditing of thrifts.