In this scenario, the Big Four (Deloitte, EY, KPMG, and PwC) went bankrupt because major companies had accounting scandals. But the Big Four were also directly and indirectly involved, so their licenses were suspended and they could not accept new clients because of the scandal.
But the scandal is causing Big Four (Deloitte, EY, KPMG, and PwC) customers to leave for fear that it will also affect them. The Big Four’s finances are in jeopardy and they are declaring bankruptcy to prevent the problem from getting worse.
I would like to know what economic consequences this event could cause, and if this event could be comparable to the crisis of 2008, 1929 or more serious than the two mentioned above.
Do you think companies will ask governments to bail out the Big Four?
I don’t think companies want to revive or rescue the Big Four after the accounting scandals. They prefer to stay as far away from that problem as possible.
No, the big 4 will use their own army of lobbyists to convince governments to bail them out.
Well, if that’s the case, I can’t imagine how much money they’re going to give to get the government to bail them out.