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More good stuff for auditors – 3/3/16

Image courtesy of DollarPhotoClub.com
Image courtesy of DollarPhotoClub.com

A few articles for CPAs.

  • A ‘virus’ that can infect your quality control system.
  • How to quickly check if someone is licensed.
  • Risks of working for the Big 4.
  • Deep background on the Private Company Council.

2/10 – CPA-Scribo – How Internal Viruses Affect Accounting Firms – No, not the kind of viruses you were thinking. This is caused by staff doing a quick search on the ‘net to find a sample note and pull down an erroneous example, which spreads to most financial statements issued over the next year.

Charles Hall provides a frighteningly real illustration how such a virus could hit a firm.

More good stuff for auditors – 3/3/16 Read More »

Why I am so optimistic – 2

200 years ago subsistence agriculture was the norm across the planet. Photo courtesy of DollarPhotoClub.com
200 years ago brutal poverty was the norm across the planet. Not so today. Photo courtesy of DollarPhotoClub.com

Previously mentioned when I look at long-term economic trends I am incredibly optimistic. When I look at the headlines this morning or news from the political world, I am very discouraged.

(Cross-post from my other blog, Nonprofit Update.)

To see one illustration of why I am so optimistic for the long-term, check out a column by Glenn Reynolds at USA Today: Actually, things are pretty good / Free markets and free inquiry have changed the historic ‘norms’ of poverty and violence.

Earlier post summarized in one paragraph what caused this radical improvement.

Here are a final two points from the article I’d like to highlight:

Second, it is possible for us collectively to turn back history.

Why I am so optimistic – 2 Read More »

Minor updates on bank fiascoes and settlements

Image courtesy of DollarPhotoClub.com
Image courtesy of DollarPhotoClub.com

A few articles on various bank fiascos: first private settlement for manipulating LIBOR, two rumored criminal investigations for selling MBS’s, and a billion dollar settlement for money laundering.

11/13 – Reuters – Barclays in $120 mln settlement of Libor case – lawyers – Barclays is first out of the gate settling private lawsuits in US for manipulating Libor. …

Minor updates on bank fiascoes and settlements Read More »

Minor updates on the banking fiascos: Forex settlements and a new fiasco

Settlements of private lawsuits are continuing. Also, settlements with CFTC underway for another rate manipulation scheme.

6/18 – Wall Street Journal – Banks’ Civil Forex Settlements Near $2 Billion/ Barclays, BNP Paribas, Goldman Sachs and HSBC recently signed agreements to settle case  – The settlements for private litigation over manipulation of foreign exchange rates are moving forward. Article says HSBC has settled up for $285M, Barclays for $375M, Goldman Sachs is in for $129.5M, and an unknown amount for BNP.

By my calculation that brings the total for seven banks to …

Minor updates on the banking fiascos: Forex settlements and a new fiasco Read More »

Speculation on upcoming bank settlements

Not much news on the bank fiasco front in the last week or so. Here are two articles pondering what settlements are on the horizon.

5/26 – Alison Frankel at Reuters – Forex class action deals may hint banks braced to lose Libor appeal – Citigroup settled up for $394M with private parties over manipulation of forex.

Article points to one settlement I missed:

1/5 – Reuters – JPMorgan settles currency manipulation lawsuit in U.S. – Morgan will settle up with about $100M.

Speculation on upcoming bank settlements Read More »

Deutsche Bank ponies up $2.5B for cooking Libor; industry wide settlements approaching $9B.

The dubious distinction of drawing the largest fine for manipulating Libor goes to Deutsche Bank. Their total tab is now $3.5B. That leaves UBS in a distant second place at $1.6B.

Check out two articles on April 22:

Deutsche Bank will pay slightly over $2.5 billion to settle up for manipulating Libor, Eurbor, and Tibor (Tokyo interbank). Several specific Directors and VPs will be fired.

A subsidiary company in Britain will plead guilty to violating American criminal laws.

Deutsche Bank ponies up $2.5B for cooking Libor; industry wide settlements approaching $9B. Read More »

Deutsche Bank in final negotiations for their Libor manipulation. If they settle at $1.5B, it would bring cumulative Libor fines to $7.6B.

Leaks to Dealbook suggest Deutsche Bank could have a settlement in May with DoJ, NY DFS, CFTC and Financial Conduct Authority in London. Amount of settlement is looking to be over $1.5B and involve a guilty plea to a criminal charge by a British sub of the bank.

Report is Deutsche Bank Nears Plea Deal Over Libor Manipulation.

Several comments in the article refer to ‘discounts’ given to the first-to-settle, which was UBS. Also comments that the last to settle pays a premium.

I’ve started tracking the Libor and Forex settlements in a spreadsheet.  There are too many banks dealing with too many regulators on too many issues to keep everything straight in my little brain.  Good infographic on settlements from WSJ here.

Deutsche Bank in final negotiations for their Libor manipulation. If they settle at $1.5B, it would bring cumulative Libor fines to $7.6B. Read More »

The suspense and wait continues – Scott London sentencing for insider trading rescheduled from February 27 to April 21

Since there has been so much traffic today checking out posts about the scheduled date for Scott London’s sentencing for his admitted insider trading (thank you for the mention, Going Concern!), I thought to check the federal document system before turning in for the night.

Guess what I found?

The sentencing has been continued from February 27 to April 21.

Previously mentioned there were four documents filed under seal.

As of yesterday morning, all four entries had a date of 2/18/2014 and said:

SEALED DOCUMENT- Under Seal Document (mat) (Entered: 02/19/2014)

When I looked a few minutes ago, item #45 still had a date of 2/18/2014 but the comment has been changed.  It now reads:

SEALED DOCUMENT- Under Seal Document – Sentencing hearing set for 02/27/14, continued to 04/21/14 at 8:00 a.m. (mat) Modified on 2/24/2014 (jag). (Entered: 02/19/2014)

That means the sentencing which had previously been scheduled for February 27 has now been moved to April 21, 2014.

Everyone who had been looking forward to a generous serving of popcorn and schadenfreude on Thursday will have to wait another 2 months. 

Update:  According to the comments on the docket, sentencing has been continued to the following dates: 10/21/13, 12/9/13, 1/27/14, 2/6/14, 2/27/14, 4/21/14.

Other tidbits: Passport was surrendered on 4/17/13. Turned in $50K on 4/19/13, which is presumably the estimated proceeds of the then-alleged insider trading.

The suspense and wait continues – Scott London sentencing for insider trading rescheduled from February 27 to April 21 Read More »

Is that $13B settlement with JP Morgan justice or a travesty?

If J.P. Morgan pays out $13 billion to settle claims over residential securities as expected, is it reasonable justice or is it unjust?

There is a divergence of opinion on that question. This post will explore both schools of thought.

Two main issues

Is that $13B settlement with JP Morgan justice or a travesty? Read More »