This changes allows the pooling of mortgages together and the creation of Mortgage Back Securities, which were then sold to investors in the secondary market. This made more money available to lenders and they were able to give out more loans hence, expand home ownership. The originations of loans by financial institutions regardless of credits worthiness by financial institutions, was encouraged by the fact that banks did not have to carry these loans on
In conclusion, the Sarbanes-Oxley Act is an integral part of internal control. Because of Section 404, the CEO’s and chief financial officer are now held accountable for the accurate filings of its financial statements, or face stiff penalties. In 2007, SEC Chairman Christopher Cox stated, “Sarbanes-Oxley helped restore trust in U.S. markets by increasing accountability, speeding up reporting, and making audits more independent.” (Sarbanes-Oxley Act, 2010, section 6, para. 2). Because of SOX, investor’s confidence has improved and financial statements are now more accurate and
That is what makes the company so compliant with the debt that they owe. “ Duke Energy is in compliance with all covenants related to its debt agreements.” (Duke Energy corp., 2010) This can be a very good thing, that way the company has time to pay off debt and not earn more then what they already have. Ratios are used so that companies are able to meet short-term debt. Current ratios and quick ratios are liquidity ratios that help signal complications. Current ratios show relative amount of working capital, while quick ratios show the amount of quick assets by current liabilities.
Their preferred status as the government's banker caused others to view them as more secure, which led to their holding deposits and serving as a "banker's bank." That, along with an expanded role in payments and lending, led to their taking on a regulatory role, since they needed to ensure the quality of banks with which they were doing business. And finally, their power over the issuing of currency and tremendous capital holdings led to the development of monetary policy, for which central banks are now best known. In designing the new Bank, Glass and Willis took lessons from the First and Second banks. They removed the private role of the bank in commercial lending, so that the new bank would be a largely public institution.
Information is reasonably free from error. c. Information that is measured and reported in a similar fashion across companies. d. Information is timely. 35. What is meant by consistency when discussing financial accounting information?
Information is reasonably free from error. c. Information that is measured and reported in a similar fashion across companies. d. Information is timely. 35. What is meant by consistency when discussing financial accounting information?
Because of the impact Wal-Mart has had not only on the retail industry in the United States, but also globally, I think it is safe to say that Wal-Mart is a very secure company. They are ahead of the game in the retail industry. This company has been around for a long time, since 1962. I do not know if everyone else feels the same way I do, but I personally could not imagine life without Wal-Mart. With almost everything you need under one roof, Wal-Mart is just the most convenient and cost-efficient choice and has been for quite some time now ("Walmartstores.com:
Our value-added: financial advice. Our competitive advantage: our people. The company’s mission is to satisfy all of their customers' financial needs, help them succeed financially, be the premier provider of financial services in every one of their markets, and be known as one of America's great companies (Wells Fargo, 2009, para. 6). Wells Fargo mission and vision statement is understandable.
Freedom was taken for no apparent reason. Bush knew more than what he spoke of. The military was powerful and is now ready for anything. The emergency team was helpful is caring for the well-being of the nation. The financial institution remained strong.
One reason that Madoff was so successful was that he was a highly respected, well-established and esteemed financial expert. His reputation was strengthened by the fact that he helped found the NASDAQ stock exchange and served a term as its chair. What's more, at the same time he was running his scheme, he was also running a legitimate business, which didn’t occur overnight. This was a scary thing to imagine and he had many bamboozled. You would think that over duration of time such as this, one would pick up with Bernie Madoff.