LONDON, April 10 (Reuters) - Britain's audit regulator saidit was considering a probe into how KPMG checked the books ofHBOS, the UK bank that had to be rescued with taxpayer money inthe financial crisis.
"We don't currently have it under investigation but we aremonitoring the situation quite closely with everything that isgoing on at the moment, and then we will take a decision whetheror not to start an investigation," an FRC spokeswoman said.
KPMG said it stands by the quality of its work at HBOS,which is now part of Lloyds Banking Group.
UK shareholder advisory group Pirc said in a letter to theFinancial Times on Wednesday there should be an independentinvestigation into how KPMG audited HBOS in the run up to thebank's collapse.
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