SEC Penalizes Deutsche Bank for Questionable Accounting Issues
Accounting mistakes can happen to anyone, whether you’re self-employed, have a small business with just a few employees, or you run a major corporation. However, even when mistakes happen, the consequences can be damaging. When those mistakes, or irregularities, involve large organizations like corporations, banks and financial institutions the consequences can be severe.
Recently, the U.S, Securities and Exchange Commission decided to fine Deutsche Bank for financial accounts that were reportedly misstated as the most recent financial crisis in 2008 and 2009 was reaching its peak. According to reports, U.S. officials stated that the bank undervalued the risk on its books by incorrectly accounting for so-called gap risk as they pertained to LSS trades. The U.S. Securities and Exchange Commission fined the bank $55 million for the alleged improprieties.
Deutsche Bank claimed that it used such procedures because there were no reliable models available at the time to properly measure gap risk. The problem with understating gap risk is that it could make it seem that the bank’s books were actually stronger than they really were. The $55 million fine finally brings to a close a prolonged investigation into the valuation of complex derivatives.
Accounting policies and practices are very important for anyone, but especially public corporations that are under the watchful eye of the Securities and Exchange Commission. At GROCO we can help your company or financial institution, large or small, with all of its accounting needs. Just contact us for assistance by clicking here, or call us at 1-877-CPA-2006.
Setting Personal Goals at Home and at Work
Should you be setting personal goals at home and at work? Do you find yourself drifting every now and then, going from day to day, just not achieving very much? If the answer’s yes, don’t worry!…you’re not unusual. But a lot of people do find it hard to get out the trap. They know they could…
Federal Government Takes in Record Tax Haul in 2014
Federal Government Takes in Record Tax Haul in 2014 Three trillion dollars is a lot of money. Just imagine what you could do with $3 trillion. The possibilities are practically limitless. Of course no one is worth $3 trillion, individually. However, the United States Federal Government recently reported that for the 2014 fiscal year it…
Do You Need to File a Federal Income Tax Return
Many people will file a 2013 Federal income tax return even though the income on the return was below the filing requirement. The questions below will help you determine if you need to file a Federal Income Tax return or if you need to stop your withholding so you will not have to file an…
Will True Tax Reform Happen in Our Lifetime?
Will True Tax Reform Happen in Our Lifetime? Will explorers ever truly discover the Fountain of Youth? Will the Cubs ever win the World Series? Will Elvis ever be found alive? There are so many questions that might not ever be answered in our lifetime. Here’s another one: will we ever see true tax reform…