"Sources at KPMG said that it was well able to manage the potential conflict of interest.... The investigation is understood to have been conducted by its forensic team, which is separate from its audit partners."
Accepting that there was no undue influence brought to bear, one has to question the findings of the forensic team, seeing as how the bank was subsequently brought to it's knees by it's excessive exposure to risk.
he recieved his knighthood for 'services to the financial industry' (the only reason I have been able to find out) will he be asked to return the knighthood given what he has actually done to the financial industry?
I think the chances of that happening are pretty slim.
What I find interesting about the whole wider problem is the so called masters of the universe who represent some of the best brains in the world in this area became so jointly culpable.
In their own way they became part of their own gang or tribe culture. Just as group culture is found in gangs, societies, football fans of a certain type and so on the whole justification for the collective blindness was based upon the idea their own peers did it to.
These Bozos just surround themselves with "Yes Men", with a bit of minor tweaking the company runs itself during the good times. This produces a very familiar symptom called cranial -anusolitis resulting in Rhinomyopia with associated megalomania.