Update on Forex manipulation. Also, another thought why the banking fiascos won’t be ending anytime soon
Previously mentioned the big banks are under investigation for allegedly manipulating forex: Next banking fiasco? Manipulating foreign exchange rates? Those are the rates used to trade currencies. In addition to admitting manipulation of Libor, many banks now stand accused of manipulating forex.
Just two updates..
10/30 – Wall Street Journal – Big Banks Brace for Penalties in Probes – Tons of leaks feed the story of the typical cast of big banks being in negotiations to settle allegations of their manipulating foreign exchange rates, or forex. Big news to me is the banks are all trying to settle at the same time with all of the regulators.
(If one company reaching a simultaneous agreement with every regulator is called a global settlement, then if every company in the industry reaches an agreement with all regulators on the same day, would that be called a global global settlement? Universal global settlement?)
Another thing you may enjoy about SSARS 21 is the slim size.
The full document is 157 pages long, but of that the front matter is 6 pages and the contents listing takes up 7 pages.
Section 60, General Principles, is 18 pages long including 2 pages of exhibits. So that is 16 pages of text. Read the rest of this entry »
I just noticed there are some new risk alerts out from the AICPA that you can use to get ready for your year-end work.
Check out: Read the rest of this entry »
The accountant’s report for a review engagement has been revised by SSARS 21. Here is an example of the standard report and then a modification of the standard report.
Copy and paste at your risk.
Illustrative comparative review report
The AICPA has a great five-minute video providing an intro to SSARS 21.
Can’t go into much detail in five minutes, but it is a superb place to get started.
Here is the new compilation report that will be used when SSARS 21 goes into effect.
I will provide three examples. First, the illustrative standard report. Second, modification of the standard report for a sole practitioner. Third, modification for a non-profit organization.
Copy and paste at your own risk.
Illustrative standard report Read the rest of this entry »
My previous post described a comment by Sam Antar during his CPE session that the fines arising from of a long list of financial fiascos are essentially a tax on illegal behavior.
He made another comment in that session that I wanted to describe in detail. He said these frauds are a cancer destroying capitalism.
I had opportunity to visit with him a few weeks ago and asked him to expand on this idea. I will summarize what we discussed.
Cancer destroying capitalism
He indicated the foundation of capitalism is reliability of financial information. If you can trust financial information you read then we can do business with each other.
He says the extent of frauds we have seen are leading people to lose faith in financial information. That leads to losing faith in their counterparties. Therefore people have less trust. In financial terms that means the risk premiums for transactions go up. The interest rate built into a transaction increases and the return drops.