Deloitte has resigned as auditor of Adani Ports amid concerns over related party transactions first raised by short seller Hindenburg Research. I don’t want to throw stones at my former employer (because one day I may need a reference), but Deloitte didn’t seem to have a problem with these transactions in the four audits it did of Adani Ports prior to the release of Hindenburg’s research report. Who is really doing the audit here?

The lowdown

• 🫥 Deloitte resigns as auditor of Adani Ports amid concerns over related party transactions.

• 🛡️ US Supreme Court halts bankruptcy settlement that shields Purdue Pharma owners from lawsuit.

• 💳️ UBS says it does not plan to use Swiss taxpayer funded backstop offered as part of Credit Suisse takeover.

Flex your finance muscle 💪

Credit Default Swaps

A Credit Default Swap (CDS) is a financial contract that acts like insurance against the default of a bond or loan. The buyer pays regular premiums to the seller and, in return, the seller agrees to compensate the buyer if the underlying credit instrument defaults. It’s a tool for transferring credit risk, but it can also be used for speculation.

CDS contracts were notably involved in the 2008 financial crisis, helping cause the collapse of AIG. The instruments have suddenly become very popular again. Should we be worried?

Featured story

BDO abandons the partnership model with Apollo’s help

Big US accounting firms BDO, Grant Thornton, and Marcum have been exploring taking PE money ($) in what has traditionally been a partnership-driven industry. PE is attracted to the accounting industry for its stable cash flows and partners are presumably attracted to PE because of the potential for a windfall.

BDO is now going ahead with a deal with Apollo ($). Apollo will provide $1.3 billion in debt financing to fund purchases of shares by a new employee trust and refinance some of BDO's existing obligations. The trust will then use part of the funds to buy a minority stake in the firm from existing partners.

BDO USA moved away from the traditional partnership model and became a corporation last month, possibly driven by the promise of a windfall for partners. But beware, EY has recently demonstrated the risks of chasing a windfall.

The content we're consuming today

• Money Talks podcast: Click and collect a grocery victory.

• Bits about Money: Credit card debt collection.

• Bloomberg: Is the Airbnb Dream Dead? ($).

Off-balance sheet items

• The FIFA Women’s World Cup is moving into the semifinal stage. The weekend saw the most exciting end to a match yet – a penalty shootout between France and Australia. See the highlights.

The bottom line