Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Minor updates on banks meeting justice

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In the justice grinds slow department….

There has been much speculation of a settlement in the works for Credit Suisse for their efforts to help Americans avoid tax by secretly stashing funds in Swiss accounts. Reports are firming up that the bank will write checks of $2.5 billion to settle up. Will also take one guilty plea on a criminal charge.

The Wall Street is reporting Credit Suisse to Pay $2.5 Billion in Pact.

Settlement is reportedly lining up as:

  • $1.7B – Department of Justice
  • $0.1B – Federal Reserve
  • $0.6B – New York Department of Financial Services

Looks like the bank will plead guilty to one criminal charge.

Several reports I’ve read indicate there is substantial behind the scenes effort to coordinate with all the involved regulators so they won’t revoke any licenses or ban the bank from operating in the US.

Article says the deal could be signed next week (late May ’14).

One banker from Credit Suisse pled guilty to a criminal charge in March.

Rigging Libor

Another article in the WSJ reports U.S., British Regulators Fine London Brokerage for Rate Rigging.

R.P. Martin Holdings Ltd is one of the small brokerage firms that helped cook Libor. They settled for a $2.2M fine from the U.S. CFTC ($1.2M) and the British Financial Conduct Authority (US$1.06M). They are the sixth institution penalized.

Last fall they received a $338K fine from the E.U. antitrust regulators.

In a part of the story that creates the best accountability, two brokers from the Martin firm are still awaiting trial for their role in manipulating Libor.

I look forward to reading of their eventual convictions and jail sentences.

Time in prison and a felony record is the ideal way to prevent fiascos by going from

  • Sure, I’ll help you cook Libor, since we get a bonus and if we get caught the CEO will get fired and the stockholders will pay the fine

to

  • No way dude – I’m not goin’ to jail.

Written by Jim Ulvog

May 16, 2014, 14:05 pm at 2:05 pm

Posted in Fraud, Other stuff

Tagged with ,

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