Dennis Howlett has looked at the developing Satyam scandal in India:
And note the government said this too:
Action against auditors of the company has already been initiated by the ICAI,
As Dennis says:
More to the point: can you imagine the UK or US governments taking similar action? We often think of India as a land of great inequality and as a mildly corrupt regime. I can guarantee that in the eyes of the world, such actions, when taken appropriately and at the right time are confidence boosters.
But the Boards of the banks that failed in the UK are still in place (by and large). I know they didn't commit fraud. But they failed spectacularly. Similar action would have been appropriate their too.
As would action against their auditors have been right.
But it didn't happen. I think we have a lot to learn.