While on the cusp of one more financial crisis, the time has come to ask yet again: What is the FASB accomplishing that will fix the deeply flawed accounting by banks for loan losses? Answer: nada, nichts, bupkis, absolutely nothing. Instead, the FASB has been wallowing…
Many books and articles have been written to describe the mishaps that led to the Great Recession of 2008, but few have done so while putting the role of accounting standards and auditing in context. I reported back in January…
The Senate Subcommittee on Securities, Insurance and Investment has announced that it will meet this Wednesday to conduct a hearing entitled "The Role of the Accounting Profession in Preventing Another Financial Crisis." "The witnesses on Panel I will be: Mr.…
If you want to understand the causes of the financial crisis from 25 pages instead of the 600 pages burped up by the FCIC, then read this: Understanding the Subprime Financial Crisis, by Duke Law professor Steven L. Schwarcz. I…
According to the American Bankers Association's August 5th letter to Treasury Secretary Timothy Geithner, the banking industry will be fundamentally changed if the FASB were to require banks to account for its loans at fair value. Everybody who thinks that…