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.
Is Obama Secretly Trying to Raise the Death Tax Again?
Is Obama Secretly Trying to Raise the Death Tax Again? Democrats and Republicans have been battling over the estate, or death tax for decades. Democrats always push for a higher rate, while republicans would like to completely eliminate it. During the most recent Bush administration the death tax dropped from 55 percent to 45 percent…
Mark Cuban’s Take on Donald Trump’s Taxes
Mark Cuban’s Take on Donald Trump’s Taxes If you follow the presidential election then you know that this year’s run for the Oval Office is perhaps one of the most spite-filled elections our country has ever faced. According to many political pundits, talking heads in the media and dozens of poll results, the last two…
States to Avoid when Retiring
States to Avoid when Retiring Are you on the verge of retirement, or perhaps just a few more years away but you’re ready to start making some retirement plans? There are many things to consider when it comes time to retire, not the least of which where you choose to call home. For many people,…
Tax-Free Spinoffs Could Be Much Tougher Under Proposed New Rules
Many U.S. companies take advantage of lower foreign taxes by creating tax-free spinoffs of their parent companies. It’s a great and legal way to lower their corporate tax bills. However, some lawmakers have long pressed for changes to these rules and it appears that changes could be coming. The U.S. Treasury Department recently proposed…