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.
These Two Phrases Are Signs of Weak Leadership
These Two Phrases Are Signs of Weak Leadership Good leaders and bad leaders have many differences. Effective leaders tend to do things well, while ineffective leaders often don’t. However, it’s interesting to note that both kinds of leaders make mistakes. No one is perfect. What sets these two kinds of leaders apart is how they…
In Which Leadership Traits Do Women Rank Higher Than Men?
In Which Leadership Traits Do Women Rank Higher Than Men? Men and women are different. Neither is better than the other, and they both excel at different things. Sometimes women are better at certain things than men, and the opposite is also true. So what about when it comes to leadership? Which things do women rank higher in…
What’s New With the Alternative Minimum Tax?
What’s New With the Alternative Minimum Tax? The Tax Cut and Jobs Act affected numerous portions of the nation’s tax law. However, one part that hasn’t been discussed much is its effect on the Alternative Minimum Tax (AMT). The AMT has been around since 1969 and its purpose has always been to make sure that…
The 5 Must-Have Leadership Traits for Executives
The 5 Must-Have Leadership Traits for Executives If you’re in an executive position then it’s a given that you’re a leader, right? Well, in reality, just because you carry an executive title that doesn’t make you a true leader. In fact, in order to be a real leader, you need to develop and cultivate certain traits…