The financial gumshoes at the SEC have closed their investigation of Overstock.com and have concluded that no enforcement action is necessary. Naturally, former Arkham Asylum resident and current Overstock.com CEO Patrick Byrne sees this as a vindication: "We are the ones who brought all these matters to light, we made the corrections, we fully disclosed these […]
There probably aren't too many of them floating around out there, but if you happen to see one, see if you can get a second opinion: The SEC alleges that James Michael Murray raised more than $4.5 million from investors in his various funds including Market Neutral Trading LLC (MNT), a purported hedge fund that claimed […]
One-man C-suite Michael Koss and the company that bears his name settled with the SEC today, according to a Commission litigation release. This all stems from the dodgy financial statements the company put out from 2005 to 2009 that were carefully orchestrated by shopper-'til-you-stopped-her Sue Sachdeva. As for the punishment, well, it's kinda meh: The […]
Ah, the Volcker Rule… an allegedly sublime piece of legislation that keeps the Goldman rats from doing things like betting against clients and raking in an extra million a day. Love it or hate it, you have to admit it's a step in the right direction if you're at all familiar with its intent. Of […]
Bryan N. Polozola simply misremembered that he took that exact amount of money from a old employer. Problem is, he misremembered with the SEC: Polozola was the subject of a 2005 NASD (now FINRA) proceeding alleging that he took $49,350 in funds from a former employer for his personal use. Polozola neither admitted nor denied […]
PCAOB Chairman James Doty shot the breeze with the SEC for awhile today, speaking about, among other things, how the Board would handle this boatload of Chinese filers who don't seem to know their asses from their elbows when it comes to accounting and their auditors who are similarly clueless. Doty assured the Commission that […]
This far from being Notre Dame's Jerry Sandusky moment but it still has to hurt. The Securities and Exchange Commission today charged Daniel Ruettiger and 12 other participants in a scheme to deceive investors into buying stock in his sports drink company. Ruettiger is widely known for having inspired the 1993 motion picture "Rudy." According to […]
A recommendation on whether U.S. companies should switch to international accounting rules will take a few more months, the Securities and Exchange Commission’s chief accountant said Monday. The SEC’s staff had been expected to make a recommendation by year-end on whether U.S. companies should adopt the global rules, known as International Financial Reporting Standards. But the staff needs “a few additional months” to complete its work, SEC Chief Accountant James Kroeker said. [WSJ]
Because, you know, it’s sorta tricky and it didn’t really turn out so well for Corzine & Co.
The SEC is in talks with the Financial Accounting Standards Board, which sets accounting standards, about “repurchase-to- maturity” agreements that MF Global used in off-balance-sheet accounting, Schapiro said today during a hearing before the U.S. Senate Agriculture Committee in Washington. “We are talking with FASB about whether we need more disclosure of those,” Schapiro said.
Senator Kent Conrad (D-ND) seems a little more urgent:
“How is it possible that someone is able to bet the farm here, multiple times, and it disappears from the balance sheet because of this repo-to-maturity technique?” asked Senator Kent Conrad, a North Dakota Democrat, noting that the technique made it appear as though the risk had been “sold.”
“That is a loophole so big you can drive a Mack truck through it,” Conrad said. “If that’s not closed, we should ask ourselves what we’re doing.”
I think we all know what a lot of people at the SEC are doing.
If there were candy involved in this, it might be considered creepy.
The SEC hosted a shadowing event at its Washington, DC HQ yesterday (what, no invite for AG?) as well as a few regional offices to show high school students interested in finance just how cool the SEC is and how much fun it is to work for a [dot]gov in the business of protecting investors or whatever it is the SEC purports to do these days.
Participating students are involved in the Academy of Finance, one of five career-themed academies that are part of the National Academy Foundation (NAF). More than 250 students are visiting SEC offices this week in Washington, Atlanta, Boston, Denver, Los Angeles, Miami, Philadelphia, Salt Lake City, and San Francisco. The kids will hear from SEC Commissioners Elisse Walter and Troy Paredes and other SEC leaders in group discussions, and are then paired with an SEC professional to observe the workday. SEC staff members from various divisions and offices volunteered to be shadowed and, according to the press release, “are enjoying the opportunity to explain their work and interact with America’s next generation of financial professionals.”
“By shadowing an SEC employee for the day, students can learn about the SEC’s mission on behalf of investors and the work that we do on a daily basis to achieve it,” said Kathy Floyd, a Deputy Director in the SEC’s Office of Investor Education and Advocacy. “We hope to pique the students’ interest as they consider their own potential career paths in the financial services industry or in public service at an agency like the SEC.”
JD Hoye, President of the National Academy Foundation, added, “The National Academy Foundation provides students with experiences that allow them to see the real world applications of what they are learning in school and hone the skills necessary to excel in their careers. Through our partnership with the SEC, students gain a window into an important part of the financial industry, underscoring the relevance of their class work and exposing them to possible career paths.”
The shadowing program helps the SEC meet objectives in Section 342 of the Dodd-Frank Act, which calls for federal financial regulators to seek diversity in their workforce at all levels and, where feasible, to partner with inner-city high schools, girls’ high schools, and high schools with primarily minority populations to establish or enhance financial literacy programs and provide mentoring. Funny, I don’t think any of the dreadlocked teenagers that hang out on my corner are all that interested in finance and accounting beyond the math required to figure out how many 8ths are in an ounce but whatever, good for them.
It’s important to start them young. Way to go, SEC.
If anyone over the SEC needs a little help getting their heads around how to best get on board with IFRS, H-squared has found a prize pupil for you to emulate:
Addressing a conference in Sao Paolo, the former Dutch finance minister used Brazil as a “textbook example” of how best to implement global accounting standards. Hoogervorst […] praised the country’s full adoption and decision not to “tweak” the standards, saying this means global investors are “entirely comfortable” Brazilian companies’ financial statements.
Last week the bane of Big 4 auditors existence, the PCAOB, broke their cherry on releasing Part II of an inspection report for a Big 4 firm. The honor went to Deloitte, who sufficiently blew off the Board’s recommendations for 12 months, which led to the release of Part II.
Bloomberg‘s Jonathan Weil, who usually sits back with popcorn while these things go down before chiming in, got to it today but with a twist that you probably weren’t expecting: