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.
How Has the Tax Reform Affected the Real Estate Market?
How Has the Tax Reform Affected the Real Estate Market? One of the doom and gloom theories regarding the federal tax reform, also known as the Tax Cut and Jobs Act, was that it would put a heavy burden on the real estate market. The theory was that because the reform placed a $10,000 cap…
How to Lower Your Tax Bill in Retirement
How to Lower Your Tax Bill in Retirement How far away are you from retirement? Are you getting closer to those so-called “golden years?” If you are then you hopefully you’ve already started preparing for your retirement with a sound plan. Retirement is supposed to be a glorious time in life. But unfortunately, for many,…
Monster Under The Bed to IRS
Monster Under The Bed to IRS Transcript: When the economy went down, it affected me really badly. It got so bad that the monster under my bed had to go and get a new job. I was relieved at first and I started sleeping better, until he visited me at work a couple months later…
4K TV
4K TV Transcript: I bought a brand new 84”, 4K TV this year, and I even wrote it off on my taxes. What? My accountant said I needed to look at the bigger picture of things. To receive our free newsletter, contact us here. Subscribe our YouTube Channel for more updates. This transcript was generated by software and…