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.
Vampire Meetings and How to Slay Them
Vampire Meetings and How to Slay Them By Peg Kelley Meetings can be like mythical vampires – sucking the life out of intelligent and creative people. And sucking the funds out of businesses. Unfortunately, there are too many of these meetings in business today. A UCLA study said the “typical” meeting includes nine people. If…
The Four Primary Functions of CEO Leadership
The Four Primary Functions of CEO Leadership By Rick Johnson The majority of effective functions of a CEO/President leaders seem to be natural visionaries. Although, I admit, that there are successful leaders that can’t see past lunch. However, those leaders without the vision that are successful are successful because they have the unique ability to…
10 No-Cost Ways to Recognize Employees
10 No-Cost Ways to Recognize Employees By Marjorie Treu 1/21/2009 Turn on any nightly newscast and you will hear the doom-and-gloom predictions of an economic recession just around the corner. Reactions inside organizations run the gamut from “Things are great. Go Team Go!” to “Stop all spending now!” based on manager leadership styles and their…
Seven Qualities of a Good Leader
Seven Qualities of a Good Leader By Barbara White How often have you heard the comment, “He or she is a born leader?” There are certain characteristics found in some people that seem to naturally put them in a position where they’re looked up to as a leader. Whether in fact a person is born…