EU lawmakers seek lighter accounting shake upThe European Parliament's economic affairs committee on Monday evening voted to scrap a draft rule that would force companies to regularly rotate or switch accounting firms. While it is not the main parliamentary committee handling the law, the vote may carry influence, although many members of the legal affairs committee, with whom the draft law rests, want more radical change. That committee votes later this month. Instead of mandatory rotation of auditors, the lawmakers favoured companies having to put out their audit work to tender every seven years. [Reuters]
Ernst & Young faces court grilling over listing bid by mainland China firm [SCMP]
One Possible Hitch to an Autonomy Investigation [DealBook]
Camp Offers Option That Would Revamp Partnership Tax LawThe proposal by Representative Dave Camp would scrap the separate rules governing partnerships and those overseeing closely held S corporations and create a unified system that adopts features of both. Camp, chairman of the House Ways and Means Committee, released the proposal as the more aggressive of two options in a draft plan to overhaul taxation of small businesses. He also released a set of incremental changes to partnerships and S corporations, along with proposals to extend expensing rules, allow more businesses to use cash accounting and simplify deductions for startup businesses. “It’s not meant to be a complete product,” Camp told reporters, adding that he is inviting comments from affected businesses. [BBW]
Finance Bill Close to Passage in Senate [WSJ]
“Two Senate Republicans said Monday they would support the Obama administration’s financial-overhaul legislation, and Democrats now believe they have the 60 votes needed to push the sweeping bill into law by the end of the week.
Sens. Scott Brown of Massachusetts and Olympia Snowe of Maine both said they would vote for the measure when Democrats bring it to a vote, which could happen as soon as this week. Democrats and administration officials believe this gives them the necessary backing to overcome a potential filibuster after weeks of uncertainty and unexpected pitfalls.”
Abu Dhabi May Make BP Investment, Crown Prince Says [Bloomberg]
“Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al Nahyan said the emirate is considering making an investment in BP Plc.
‘We are still thinking about it,’ he said in an interview in Abu Dhabi today, when asked about potentially buying a stake in the London-based oil producer. ‘We are looking across the board. We have been partners with BP for years.’
BP Chief Executive Officer Tony Hayward said on July 7 that he had a “very good” meeting with the crown prince as analysts said the oil producer may be looking for support from Middle East investors. BP shares have gained 26 percent since the start of July as the company gets closer to containing its leaking well in the Gulf of Mexico, the worst oil spill in U.S. history.”
Small Businesses Get More Pessimistic [WSJ/Real Time Economics]
“Small businesses continue to feel highly pessimistic about the U.S. economic outlook, according to a report Tuesday that showed a monthly indicator of their sentiment turning weaker in June.
The National Federation of Independent Businesses said its Small Business Optimism Index dropped 3.2 points to 89.0 last month, more than erasing the modest 1.6-point gain it saw in May. The report, which was compiled by NFIB Chief Economist William Dunkelberg, described the decline as ‘a very disappointing outcome.’ “
Kilpatrick expected to ask for court-appointed counsel for fraud case [WXYZ]
Kwame Kilpatrick needs taxpayers’ help in his tax fraud case, namely paying for a lawyer. Since he cannot afford one, the people of Michigan will be picking up the tab.
Man Claims Ownership of Facebook [WSJ]
Today in wild-ass lawsuits, “A New York judge has issued a temporary restraining order restricting the transfer of Facebook Inc.’s assets, following a suit by a New York man who claims to own an 84% stake in the social-networking company.
Paul D. Ceglia filed a suit in the Supreme Court of New York’s Allegany County on June 30, claiming that a 2003 contract he signed with Facebook founder and Chief Executive Mark Zuckerberg entitles him to ownership of the company and monetary damages.”
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 bigge was 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.
