Sen. Levin: New York regulator showed ‘backbone’ in bank settlement [The Hill]
Groupon’s accounting shuffle: why it matters [ZDNet]
Mitt Romney: Rich taxpayers will pay their share Q: Specifically what tax loopholes would you close and what exemptions would you eliminate to make the revenue-neutral equation work? A: Simpson-Bowles laid out a formula that shows that you can do just as I described. That you can bring down the rates, limit deductions and exemptions for people at the high end, and with additional growth that comes by virtue of the stimulative action you can reach a balanced budget. I will follow a model similar to Simpson-Bowles and work with Congress to identify which of the alternative methods we should apply to reduce deductions, benefits, and exemptions. Those reductions will occur for people at the high end. I have noted before my commitment to preserve tax preferences for middle-income taxpayers such as homeownership, charitable giving and health care. [Fortune]
The Accounting Trick Behind Thirty Years of Scandal [TIME]
PCAOB Adopts New Auditing Standard, Amendments [AT]
Birmingham pays fired city accountant more than a year of back pay, but legal fight continues [BN, Earlier]
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.
AIG Share Sale Raises $8.7 Billion for Treasury, Insurer [Bloomberg]
The Treasury sold 200 million shares yesterday at $29 each, compared with the closing price of $29.46 on the New York Stock Exchange. The government, which retains a majority stake, needs to sell shares at an average of about $28.73 to recover a $47.5 billion investment. AIG disposed of 100 million shares, raising $2.9 billion, according to a statement from the company.
Only China can tackle its own dodgy accounting [Reuters]
What about the hostage takers?
John Edwards: U.S. Green-Lights Prosecution for Alleged Campaign Law Violations Tied to Affair Cover-Up [ABC]
A source close to the case said Edwards is aware that the government intends to seek an indictment and that the former senator from North Carolina is now considering his limited options.
State Tax Revenue Increases by 9.1% [WSJ]
The revenue gains, which were driven by a 12.4% jump in personal income taxes, reflect the improving economy as well as tax increases passed during the recession. Sales taxes grew 5.6% while corporation income taxes, which are volatile and make up only a small portion of states’ tax collections, grew 6.9% in the quarter.
Resume Debate: Word v. PDF [FINS]
Hey, it matters.
RubinBrown joins forces with Bondi & Co. accounting firm of Denver [KCBJ]
RubinBrown LLP will merge with Bondi & Co. LLC on June 1 in a move designed to put the combined company among the nation’s 50 largest accounting firms. RubinBrown Chairman James Castellano said the deal will boost the firm’s annual revenue from $54 million to $65 million. Bondi partners were given a partnership stake in RubinBrown, but financial terms were not disclosed. The Bondi name will disappear.
LarsonAllen to Merge in Raymon Pielech Zexter [AT]
“RPZ has built a strong tax practice over the years, and we’re very proud of that,” RPZ managing shareholder Jeff Raymon said in a statement. “But in today’s business and financial market, we need to offer our clients more to help them succeed and stay competitive. Joining with LarsonAllen will give us the capacity to serve the broader spectrum of their financial and advisory needs almost immediately.”
Huguette Clark, the reclusive copper heiress, dies at 104 [MSNBC]
“IRV1040” is lurking.
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