One thing’s for sure though, when Auditors are handsomely paid by the very companies they’re supposed to audit with independence and objectivity, there’s bound to be trouble afoot sooner or later.
Monthly Archives: December 2010
Toyota Pays Record Fines – What Are They Hiding?
Posted in Consumer ProtectionWe commend the federal government and Transportation Secretary Ray Lahood for their work on this issue. Manufacturers must be held responsible for defects they create, but even more strictly responsible for defects they willingly ignore at the peril of their customers.
Hats Off To Andrew Cuomo and Mathew Lee For Tackling Ernst and Young
Posted in In the CourtsThe Wall Street Journal reported today that Andrew Cuomo, New York’s Attorney General and Governor-elect is preparing to file suit against Ernst and Young for its role in the Lehman Brothers collapse of 2008.
The Europeans Are Coming: Watch Out Google, HP, and Big Banks
Posted in Social PolicyNormal 0 false false false EN-US X-NONE X-NONE Not by land, not by sea; this time by ethernet and fiber optic cable. Zealous European regulators are in the news daily for their investigation of US based giants such as HP and Google. And those guys in Switzerland are actually serious about regulating banks. As funding… Continue Reading
Quick Links: Lawyer Advertising, McDonald’s Enticing Kids With Toys, and When Does a Settlement Become Final?
Posted in Consumer ProtectionLaw firms are often as integral to the commercial world as businesses themselves. So, should they be able to advertise like businesses? Not quite and not everywhere, but the tide is turning. The second circuit recently ruled that some advertising is protected under first amendment rights. To help solidify the ruling, the Supreme Court denied… Continue Reading
The Corporate Observer 2010 Holiday Wishlist
Posted in Consumer ProtectionIn 2010, we had plenty of opportunities to come to the keyboard in hopes of shining a light on hypocrisy, pleading for fairness, particularly on behalf of consumers and investors and just plain venting about our corporate culture that has too often lost its way. As 2011 nears, we thought a wish list for the coming year would be fun.
Will JP Morgan Chase Dodge Another Bullet?
Posted in Consumer ProtectionJP Morgan Chase (“Chase”) is not the largest bank in the land (that moniker belongs to Bank of America) but it just might be the luckiest. As readers of this blog know (click here and here for examples of past stories), Chase negotiated a sweetheart deal with the FDIC for the purchase Washington Mutual (“WAMU”). The price was right ($1.8 billion). Why? Because the FDIC didn’t let any other banks bid. Better yet, the FDIC agreed to accept responsibility for all future liabilities of WAMU. Wow! Yes, it’s called indemnification. Media darling and Chase CEO, Jamie Dimon pulled off the banking coup of the decade.
It’s the Banks, Stupid: Why Ponzi Schemes Flourished Over the Last Decade
Posted in Banks and Financial ServicesNo doubt JPMorgan Chase helped Madoff flourish. While his accountant was located in a strip mall, Madoff needed a reputable money center bank to handle the cash. He had a willing ally in JPMorgan Chase. And surely other banks sought his business.
Guest Post: Jeff Goldberg Hands Out Weekly Political Grades
Posted in Weekend EditionWhile cutting a tax deal that includes unexpected stimulus goodies, the President took the opportunity to position himself between Congressional Democrats and Congressional Republicans, two of the least popular groups in America and an excellent place for the President to be. Obama also set up a coming debate on comprehensive tax reform, a great issue for him and Democrats. Paul Krugman worries that while the tax cuts for the wealthy last through 2012, the stimulus portion of the new tax deal expires at the end of 2011, setting a potential economic land mine timed to explode for the 2012 elections. He might be right, but this will have to be an issue for another day.
Guest Post: Jeff Goldberg on the Obama Tax Compromise
Posted in Weekend EditionOn Monday President Obama announced a compromise deal with Congressional Republicans over Bush era tax cuts. Republicans get a two-year extension of all of the Bush tax cuts and a generous recasting of the estate tax. The President gets thirteen months of extended unemployment benefits, a one-year reduction in payroll tax rates and the extension of other tax breaks and credits originally included in the 2009 stimulus package.
Sad News for Investors – SEC Whistleblower Office “Put on Hold”
Posted in Consumer ProtectionThe Dodd-Frank financial reform bill has taken its share of hits over the past few months. This week’s might be the biggest. The Wall Street Journal reported Friday that a lack of funding will force the SEC to delay opening an independent whistleblower office. In the meantime, the SEC’s enforcement division will handle the anticipated 30,000 whistleblower claims per year. Surely, you’re not serious; the same SEC that missed Madoff and scores of smaller ponzi schemes.
Jeff Goldberg Guest Post: Why We Hate the Poor – They Block the View of the Shining City on a Hill
Posted in Weekend EditionSince the unemployed spend their government checks right away and don’t save much, extending benefits pumps five billion dollars a week into the economy, which does not help the Mitch McConnell project to destroy the Obama presidency. The Congressional Budget office rates unemployment benefits as the most effective short-term economic stimulator in the federal arsenal, generating nearly $1.90 in GDP for every one dollar spent. This is bad. Pain is good. Liberals, who hate America, don’t get it.