(asic.gov.au) · As the financial markets became mainstream and matured, the access to capital markets and their scrutiny have both increased. Along with the added volatility, the lending markets have seen similar risks as equity markets. With the increased speed of both financial information and market changes, the rating agencies are more important as a first step, as they are to be scrutinized for their ratings and the trend in their rating changes. (investopedia.com) · CRAs and their ratings played a critical role in the recent market turmoil. Unlike securities trading on deeper, more transparent markets, credit ratings have had an inordinate impact on the valuation and liquidity of subprime RMBSs and RMBS backed
Protects investors. Sox was created to reduce statement fraud, after the fraud scandal by Enron and WorldCom. It was created to establish higher standards in companies accounting procedures. To make sure that the information provided in the financial statements is accurate. Also to be able to penalize the individuals responsible for the fraud and to provide protection to the individuals that provide information about fraud committed in the companies.
Khristine Jackson Week 2 Homework July 19, 2014 The Sarbanes-Oxley Act of 2002 (SOX) was a direct output of the financial statement fraud that sank industry giants such as Enron and WorldCom. 1) What are the primary goals and tenets of SOX with respect to fraud? The primary goals and tenets of the Sarbanes-Oxley Act of 2002 (SOX) are to concentrate on improving the value of audits in an effort to remove fraud in order to keep the public’s attention as well as for the security of investors. In addition, SOX requests corporate management to be more accountable for both fraud prevention and detection. Similarly, corporate board is also more responsible for the occurrence of fraud with the company; under SOX, those who contribute in
However, according to the research, the average bid-ask spread is huge in the callable government bond market, the callable bonds are somewhat illiquid. Tax consideration For investors who need to pay for the tax, they need to keep adjusting their position continuously. For a long-term arbitrage portfolio, it is hard to manage the risk for the adjustment. Cost of short selling and repurchase agreement Short selling and repo certainly have risk and transaction cost (broker fee and initial margin). But for investors who own the callable bonds, costs of repo and short selling don’t exist.
Reporting Practices and Ethics Paper HCS/405 Reporting Practices and Ethics Paper In the world of financial reporting, numbers can make or break a corporation. Growing competition and diminishing profits are driving some companies to compromise their ethical standards and falsify corporate financial data. These deceptive accounting methods can cause a once thriving corporation to crumble into dust. Ethics must be at the forefront of any healthcare accounting department. Fiscal transparency within the income statement, balance sheet, cash flow statement, and statement of equity must all reflect honest and integral data in order maintain the financial stability of the corporation.
CHAPTER 4 - Internal Controls, Accounting for Cash, and Ethics ANSWERS TO QUESTIONS 1. The accounting scandals of WorldCom and Enron are partially responsible for the passage of the Sarbanes-Oxley Act. SOX requires public companies to evaluate their internal control system. 2. Internal control is the process designed to ensure reliable financial reporting, effective and efficient operations, and compliance with applicable laws and regulations.
This had led to a public enquiry, which resulted in measures being put in place in an effort to prevent similar cases happening. Peter's mother, Tracey Connelly, her boyfriend, Steven Barker, and Jason Owen (later revealed to be the brother of Barker) were all convicted of causing or allowing the death of a child, the mother having pleaded guilty to the charge. A court order issued by the High Court in England had prevented the publication of the identity of Baby P; Mr Justice Coleridge lifted this on 1 May 2009. An order sought by Haringey Council to stop publication of the identities of his mother and her boyfriend, was granted, but expired on 10 August 2009. The child protection services of Haringey and other agencies were widely criticised.
Federal Court where the jury found that the author, Chris Kyle, had unjustly enriched himself by defaming plaintiff Jesse Ventura. In the book, Kyle described blackening the eye of "Scruff Face", whom he later identified in media interviews as Jesse Ventura. The jury awarded $500,000 for defamation and $1,345,477.25 for unjust enrichment. The lawsuit, Ventura v. Kyle, is being appealed by the defendant's estate to the United States Court of Appeals for the Eighth Circuit. In December 2014, attorneys for Ventura filed a separate lawsuit against HarperCollins, the parent company of the publisher, for failing to check the accuracy of the story it used in publicity.
Thomas Huntley CJ 101 December, 2009 Ted Bundy Ted Bundy was a famous serial killer who was born in 1946. He is responsible for the deaths of over 30 people. Bundy was born to a single mother in Burlington, Vermont. Ted never knew who his real father was. His mother led him to believe that she was his sister and his grandparents were his parents.
In the 3G and TCI case, the hedge funds were exposed to the risk of volatility of the CSX returns because what 3G and TCI receive from investment bank is totally determined by the return of the CSX's common share. So they are exposed to the CSX's equity risk. Another potential risk to be considered is regulatory risk because 3G and TCI had a large undisclosed position through total return swaps (12.6%). Regulatory position on disclosure of synthetic positions There