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.
Why Structure Is the Enemy of Innovation | Richard Dasher
About Richard Dasher Richard Dasher has been Director of the US-Asia Technology Management Center since 1994 and served concurrently as Executive Director of the Center for Integrated Systems since 1998. He holds Consulting Professor appointments in Electrical Engineering (technology management), Asian Languages (Japanese business), and at the GSB (with the Stanford Program on Regions…
Inspiring a Sustainable Future Through Storytelling | Rita Whitney
About Rita Whitney Rita joined the Board in June 2010 and serves on the Mission Fulfillment Committee. She is CEO of Ravivant LLC, a Board member of United States Fencing Association (Central California Division) and Executive Director of the Stanford Fencing Association. Having grown up in New York City, Rita observed many situations where…
What Venture Capitalists Want | Wally Hawley
About Wally Hawley Wally Hawley is a co-founder of InterWest Partners (1979), one of the larger venture capital partnerships in the United States, formed to make equity investments in diversified U.S. growth companies. His prior experience includes seven years as President of SHV North America Holding Corp., a wholly owned subsidiary of a Netherlands…
Venture Capital’s Role in Nuclear Science | Ray Rothrock
About Ray Rothrock As a venture capitalist for more than two decades, Ray has assisted entrepreneurs in achieving their dreams and produced outstanding financial returns for his limited partners. He has personally discovered, created and guided more than 50 companies in the Venrock portfolio through their early stages of formation and emerging growth. Beginning…