Detroit Seeks Bankruptcy, Facing Debts of $18 Billion [NYT]
Paying Auditors for Honest Appraisals Auditors are paid by companies they audit, much as rating agencies are paid by companies they rate. This gives auditors an economic incentive to lie on their clients' behalf, even if that puts their reputations at risk. As an old German proverb puts it: Whose bread I eat, his song I sing. […] Now a band of economists, the new breed that dabbles in experiments rather than models, thinks it has evidence that there's a better way: Pay auditors out of a central fund, randomly double-check their work and link pay to accuracy. In short, change the incentives. [WSJ]
Corporate Tax-Avoidance Maps [TBP]
Fitch Predicts Challenges in Applying Lease Accounting Proposals [AT]
