Archive for the ‘Regulators, Laws, Standards, Regulations’ Category

Foreclosure Settlement Shuts Down Reviews: Banks Will Continue Business As Usual

By • Jan 13th, 2013

It’s easy to forget, with all the propaganda being published by major media, why these Fed/OCC consent decrees were issued in the first place. The fact that a borrower may be in default does not negate the overwhelming evidence that court cases have provided that banks proceeded fraudulently and illegally in some foreclosures and looted those borrowers and institutional investors in mortgage securities by charging fraudulent and illegal fees in the process.



PwC and Thomson Reuters: Too Close For Comfort

By • Dec 26th, 2012

Here’s the thing…The perception of auditor independence is as important, or maybe even more important, than the fact of auditor independence. This is not new.



McKenna Panelist At NYU On Auditor Independence And Consulting

By • Nov 28th, 2012

I was at New York University’s Vincent C. Ross Institute of Accounting Research to speak on a panel that included Paul Volcker, Bob Herz and a lawyer representing PwC and EY. The Ross Roundtable on the “Impact of Reemergence of Consulting Practices at Major Audit Firms” was well attended.



Forbes Magazine: Lying With Numbers

By • Nov 13th, 2012

The SEC is busy chasing Ponzi schemers and foreign bribers. But bogus accounting remains a bigger danger to the markets. (More links.)



At American Banker: Auditors Give Banks a Pass on Reserves

By • Sep 9th, 2012

My column at American Banker last week focused on the latest PCAOB inspection report for KPMG. We’ve got three more “Big Four” inspections reports to come – Ernst & Young, Deloitte and PwC. Don’t be surprised if you see the same focus on loan loss and repurchase reserves and the same kinds of auditor deficiencies.



Jeff Connaughton’s “The Payoff: Why Wall Street Always Wins” – A Book Review

By • Sep 7th, 2012

Jeff Connaughton’s new book, “The Payoff: Why Wall Street Always Wins”, is a must read during the Presidential election season.



A Response to Reuters on Internal Audit and Banks

By • Jun 29th, 2012

Reuters has a story out today entitled, “Regulators tighten up bank in-house checks.”

Unfortunately it does nothing, in fact it distorts, the role of internal audit, external audit and the Audit Committee of the Board of Directors in a bank.



Big Four Auditors and Jury Trials: Not In The U.S.

By • Jun 19th, 2012

You have to go outside of the US to see a trial of a Big Four audit firm to know what I’m talking about. Australia’s Centro case against PwC or Canada’s Nortel case where Deloitte partners testified recently tell you everything you need to know about why the Big Four will settle every time. Rather than have a jury and the public hear and see the pathetic state of the audit profession, its inability to stop executives who want to cheat, and its unwillingness to acknowledge liability as a firm when it screws up, the firms will reach into their seemingly bottomless pockets and pay up.



When Is A Hedge Not A Hedge? The Accounting For JP Morgan’s Bet

By • May 18th, 2012

Yesterday’s column at American Banker digs into the accounting for JP Morgan’s reported “hedge”. I was shocked – OK, not really – that no main stream media outlet had explained the stunning announcement made by Jamie Dimon last Thursday.



Aubrey McClendon Pigs Out: Chesapeake Energy’s Hidden Loans

By • Apr 21st, 2012

Chesapeake Energy’s auditor is PricewaterhouseCoopers. The auditor is paid lass than $3 million to prepare an opinion on this challenging company. Sometimes you can be paid too little to be sufficiently skeptical…