Author: Caleb Newquist

Is Obama Smart? [WSJ]
When it comes to piloting, Barack Obama seems to think he’s the political equivalent of Charles Lindbergh, Chuck Yeager and—in a “Fly Me to the Moon” sort of way—Nat King Cole rolled into one. “I think I’m a better speech writer than my speech writers,” he reportedly told an aide in 2008. “I know more about policies on any particular issue than my policy directors. And I’ll tell you right now that I’m . . . a better political director than my political director.”

Sales up at UK arm of Deloitte [FT]
The biggewas the consulting business, which increased its sales by 13 per cent to £517m, aided by the integration of acquired businesses and extra financial services work. Gains in market share lifted auditing revenues 4 per cent higher to £652m, the group said, while the tax and corporate finance divisions posted increases of 5 per cent and 11 per cent respectively. However, the average profit distributed to each partner fell 13 per cent from £873,000 to £758,000 because of the cost of making new hires and increasing pay to retain existing staff.

Markets Sink Then Soar After Fed Speaks [WSJ]
The Federal Reserve sent investors lurching from worry to hope as it warned that the economy would remain weak for some time but said it was prepared to take further steps to shore it up. The Fed’s statement, which included plans to keep interest rates near zero for at least the next two years, ultimately sent the Dow Jones Industrial Average up 4%, its biggest daily gain since March 2009. Yields on Treasury bonds dropped as investor demand pushed up prices.

For Murdoch, a Board Meeting With Friendly Faces [NYT]
One [director] is a former Goldman Sachs president who helped News Corporation broker mega-deals. Another is godfather to one of Mr. Murdoch’s grandchildren. Another ran Mr. Murdoch’s Australian subsidiary, News Limited. And those are just some of News Corporation’s directors who are designated as independent — chosen because they comply with regulations intended to ensure that companies maintain a layer of objective oversight.

NYSE Seeks to Tighten ‘Reverse’ Deal Rules [WSJ]
The New York Stock Exchange wants to toughen the standards that “reverse-merger” companies must meet to list on the Big Board, in the wake of accounting questions at many Chinese companies that have gone public via such transactions. The exchange is proposing a series of “seasoning” requirements that would effectively delay an NYSE listing for reverse-merger companies and set bars they would have to clear to obtain it.

BofA Doesn’t Need to Raise Capital, Finance Chief Thompson Tells Nomura [Bloomberg]
Bank of America Corp. (BAC), the largest U.S. lender, won’t need to raise extra capital to meet new international standards, Chief Financial Officer Bruce Thompson told Nomura Securities International analysts. The bank will be able to comply by cutting expenses, selling assets and letting some holdings decline naturally as they mature by the time the rules become fully effective, Thompson said in a meeting with analysts led by Glenn Schorr in New York.

A Much Needed Accounting Lesson for Two Senators [Accounting Onion]
Namely, Carl Levin (D-MI) and Sherrod Brown (D-OH).

People on the Move: KPMG Taps Chris Goodman as CMO [AdAge]
Goodman comes from Young & Rubicam and also did stints at Accenture and IMG.

Plante & Moran Elects 9 New Partners and One Affiliated Entity Member [P&M]
Six men and four women.

Swiss to Settle Tax-Evasion Dispute With Germany [Bloomberg]
Switzerland and Germany completed an accord to end a dispute over tax evasion by wealthy Germans holding cross-border accounts with Swiss private banks. As part of the settlement, Swiss banks will pay 2 billion Swiss francs ($2.8 billion) to the German government to cover the failure by their clients to disclose undeclared money in the past, the Swiss finance ministry said today in a statement.

Mad As Hell! [ZH]

House Postpones Vote on Boehner Debt Plan [WSJ]
The House postponed a Thursday night vote on Speaker John Boehner’s plan to raise the federal borrowing limit after he failed to stem a revolt by conservative GOP members. The delay leaves the credit status of the U.S. government in jeopardy with five days remaining before it begins running out of money to pay all its bills. The development came after a two-hour debate on the bill was abruptly ended earlier in the evening. Mr. Boehner, knowing that a rejection could undermine his speakership, then joined other House GOP leaders in trying to pressure party members to rsition.

Lehman Case Hints at Need to Stiffen Audit Rules [NYT]
The ruling ought to raise a few eyebrows at the Public Company Accounting Oversight Board, which sets auditing standards and regulates auditing firms. If the Lehman audit was in compliance with the auditing rules, it is time to review the rules.

Warren Buffett Is Wrong On Taxes [WSJ]
During Monday night’s national address, President Obama recited the Buffet line that millionaires and billionaires pay lower tax rates than their secretaries. Democrats in Congress routinely cite Mr. Buffett’s tax confessions as irrefutable evidence that tax rates on the very rich are too low and the system is unfair. And the system would be unfair, if Mr. Buffett’s tax facts were the whole truth. But they aren’t.

Yelp hires new CFO from publicly traded Move Inc. [BBW]
Online reviews site Yelp has hired the chief financial officer of publicly traded real estate website operator Move Inc. as its new CFO — an appointment that may hint it is inching closer to its own initial public offering. Yelp said Thursday that Rob Krolik will replace Vlado Herman, who has worked for Yelp since late 2006 and has been its CFO since mid-2007. Krolik starts immediately. Herman will transition out of the company over the next several months, Yelp spokeswoman Stephanie Ichinose said. The company had been searching for a new CFO for several months.

Madoff Trustee Pulls In Another Billion [WSJ]
The court-appointed trustee recovering money for investors swindled by Bernard Madoff reached a settlement of more than $1 billion with Tremont Group Holdings Inc., one of the largest funds that allegedly channeled money into his Ponzi scheme. The settlement, filed in U.S. Bankruptcy Court in Manhattan, is one of the biggest reached since the multi-billion dollar fraud came to light nearly three years ago. It brings to about $11 billion the amount that a court-appointed bankruptcy trustee, Irving Picard will ultimately be able to return those cheated by Mr. Madoff, who is serving a 150-year prison sentence.

LinkedIn for Accounting and Business Students [The Summa]
Unless you’re Jack Donaghy, you should probably consider it.

IRS to Build Database of Regulated Tax Preparers for Public Use [Bloomberg]
Taxpayers will be able to examine the qualifications of paid tax-return preparers in a database being built by the Internal Revenue Service that may be available as soon as 2013, according to congressional testimony by an IRS official. The database is part of the phased-in regulation of tax preparers that began in 2010 with a requirement that they register with the IRS and obtain an identification number.

ICAEW: ‘Big Bang’ IFRS adoption best for US [Accountancy Age]
Dr Nigel Sleigh-Johnson, head of the institute’s Financial Reporting Faculty, claimed switching in one fell swoop is evidentially better, as gradual transitions like those of private UK companies “can result in a rather incoherent and complex accounting framework”.

Woman faces trial for fake testicles [MSNBC]
“This is certainly not a staple of my ticket writing in Bonneau,” the police chief told Reuters on Wednesday.

With G.O.P. Unity at Risk, Boehner Tries Tougher Style [NYT]
“I didn’t put my neck on the line and go toe to toe with Obama to not have an army behind me,” Mr. Boehner declared at a private party meeting, according to some House members. He demanded the fealty of conservatives who were threatening to sink his budget proposal and deny him the chance to confront the Senate with a take-it-or-leave offer on a debt ceiling increase. Mr. Boehner really had no choice but to go all out. A defeat of that plan — which seemed likely Tuesday night before its prospects improved Wednesday — would have been a disastrous repudiation, in effect a stinging vote of no US groups hit as tax keeps cash overseas [FT]
As much as half US companies’ record $1,240bn in cash balances is being held overseas, according to Moody’s research, with groups wary of incurring a 35 per cent repatriation tax. The foreign holdings are limiting corporate flexibility in managing balance sheets and adding to pressure from the business community for wide-ranging tax reforms.

Treasury to Weigh Which Bills to Pay [NYT]
The outlines of the answer, however, already are clear. Officials have said repeatedly that Treasury does not have the legal authority to pay bills based on political, moral or economic considerations. It cannot, for instance, set aside invoices from weapons companies to preserve money for children’s programs. The implication is that the government will need to pay bills in the order that they come due. President Obama has warned as a result that the government “cannot guarantee” payments of Social Security benefits or other popular programs. Officials also have disputed the assertion of some Republicans that the government could prioritize interest payments.

Groupon’s Accounting Lingo Gets Scrutiny [WSJ]
Groupon Inc. has attracted scrutiny from regulators over a newfangled accounting metric it is using to market itself to investors ahead of its initial public offering, said a person familiar with the situation. The Securities and Exchange Commission has asked Groupon to answer questions about the unusual measure it invented, which paints a more robust picture of performance by excluding marketing and other expenses, this person said.

The Influence Industry: Challenging the IRS on rules that keep donors secret [WaPo]
Two advocacy groups have filed a petition with the Internal Revenue Service challenging regulations that allow political organizations such as the conservative Crossroads GPS and the liberal Priorities USA to form as nonprofits under the tax code. The issue comes down to disclosure of donors: Groups that form as nonprofits are not required to reveal them. By contrast, political groups registered with the Federal Election Commission must list all of their contributors.

Ford CFO: No More Mr. No [CFOJ]
“We’re in an expensive period,” Booth acknowledged during a conference call with analysts Tuesday, but added, “You’ll not see us backing away from world class products and world class revenues; we’ve tried doing it the other way and it doesn’t work.”

Going, Gone: Too Many “Going Concern” Warnings May Be As Bad As Too Few [Forbes]
It’s a “Goldilocks Effect.”

IRS Realigns International Tax Operations [AT]
The realignment will result in a new “Advance Pricing and Mutual Agreement program” under the direction of a single executive. The IRS also plans to increase the staff available to the two program areas. The IRS said the combined office would allow the agency to reduce the time it needs to complete advance pricing agreements and to resolve transfer pricing disputes with treaty partners in other countries. The Office of Chief Counsel will continue to help analyze and resolve the legal issues.

What’s Your Fraud IQ? [JofA]
Or maybe a “Criminal Quotient.”