October 6, 2022

Accounting News Roundup: More About That Tax Gap; Eide Bailly’s Petters Problem; MF Global Won’t Go Away | 01.10.12

Voting in N.H. Opens as Romney Fends Off Attacks [NYT]
As New Hampshire voters began casting ballots in the nation’s first primary, Mr. Romney found himself on the unfamiliar terrain of defending his business pedigree against fellow Republicans as his challengers tried to tap into a populist sentiment. He played into the criticism with a handful of missteps, with rivals jumping on him for having suggested that he, too, has feared getting “a pink slip.” The attacks were so piercing that some leading Republicans urged the candidates to back off, saying they were only helping validate the argument that President Obama’s re-election team has signaled would be central to its case against Mr. Romney if he becomes the nominee.

The ‘Tax Gap’ [Economix/NYT]
[O]ne solution to the tax gap is to increase reporting and withholding requirements. However, previous efforts by Congress to do so have been met with huge political resistance. People don’t like the intrusion into their privacy — and the diminution of their opportunities for tax evasion — and businesses don’t like the cost or the alienation of their customers.
 
Ford CFO Said to Retire in 2012 as Fields Groomed to Be Chief [Bloomberg]
Lewis Booth, Ford Motor Co. (F)’s chief financial officer, plans to retire in the first half of this year, clearing the way for Chief Executive Officer Alan Mulally to step up efforts to groom the next CEO, according to two people familiar with the plan. Mulally, 66, will probably retire around the end of 2013 and Booth’s departure gives him the opportunity to name a new No. 2 executive who could be trained as the next CEO, most likely Mark Fields, said one of the people, who asked not to be identified disclosing private plans. Fields, 50, runs operations in North America and South America. Booth, 63, has been Mulally’s de facto second in command, the only other executive with a global view of worldwide operations, said the people.
 
Eide Bailly sues to prevent $25M Petters clawback [MSPBJ]
Eide Bailly expects to face a $25 million clawback suit by the attorney trying to recover funds lost in Tom Petters' Ponzi scheme. In new court filings, the Fargo, N.D.-based accounting firm said Minneapolis attorney Doug Kelley, appointed by Minnesota's U.S. Bankruptcy Court to act as receiver for the Petters companies, threatened to sue the firm by Tuesday to recover unspecified damages in excess of $25 million.
 
Fremont-Based Übermind Acquired By Deloitte [FU]
All your consultants belong to the Deloitte.
 
MF Global UK clients back KPMG in vote [Reuters]

MF Global UK (MFGLQ.PK) administrator KPMG has won the backing of the failed broker's clients to push ahead with the return of an estimated $1.2 billion. KPMG held a meeting on Monday in London with over 800 MF Global UK clients and creditors at which these firms voted in favour of it continuing to work on unwinding the defunct broker, KPMG said on Tuesday. "Both clients and creditors voted overwhelmingly in favour of our proposals, which include the expectation that we will be able to make an interim distribution of client monies within the next few weeks," said Richard Heis, joint special administrator of MF Global UK. The vote is a green light for the administrator to push ahead with the 4,500 clients and creditor claims KPMG said on Friday it had received for an estimated $1.2 billion of cash and assets.
 
The Neverending MF Global Story: Regulators Block The Truth [Forbes]
Francince McKenna: "Instead of looking out for MF Global investors – and customers who are still waiting for their money – it looks like regulators and the bankruptcy trustees are busy suppressing information. Instead of full transparency, regulators and the trustees are holding onto crucial details that might tell us all who was asleep at the wheel when the broker/dealer and futures commission merchant (FCM) headed over the cliff."

 

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