by Kurt Schulzke on January 28, 2008
The case of French bank Société Générale, in which a single trader’s off-the-reservation trades cost the bank €4.9 billion ($7.2 billion), highlights a systemic control weakness in global financial markets. No system of regulation, operated from outside and above individual companies can be expected to corral determined fraudsters on a timely basis.
Friday’s Wall Street Journal quotes Charles Goodhart, program director of regulation and financial stability at the London School of Economics, for the proposition that regulators should “provide incentives for people working with the fraudster to catch the fraud.”
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by Kurt Schulzke on January 22, 2008
When the WSJ Online runs a headline like the one below, you can be pretty sure that whatever the Fed has done hasn’t soothed the markets.
More soothing news at the Wall Street Journal Online.
by Kurt Schulzke on January 22, 2008
Today, the DOW Jones Industrial Average temporarily fell 465 points, roughly 3.8% of Monday’s close. When the market falls like this, lots of shares will have sold at a loss, locking in investor “damages” equal to the original purchase price minus the sale price. Company executives, boards and auditors should brace for impact as the plaintiff’s bar goes trolling through financial statements, notes and press releases for evidence of fraud.
by Kurt Schulzke on January 16, 2008
by Kurt Schulzke on January 16, 2008
Ever thought of becoming a tax collector? Practically anyone can take a shot at it these days, thanks to a little known provision in the Tax Relief and Health Care Act of 2006.
On January 14, 2008, the IRS issued “interim guidance” for blowing the whistle under its new program. The rewards for a successful whistleblower can be substantial [click to continue...]
by Kurt Schulzke on January 8, 2008
Frequently overlooked elements of commercial contract negotiations are the choice of law and choice of forum clauses. These clauses can have a dramatic impact on the timing, amount, and collectibility of the revenue or expense associated with a transaction. Most contracts written nowadays contain such clauses, but many non-lawyers downplay their importance because they are “legal technicalities” that they don’t fully understand. [click to continue...]
by Kurt Schulzke on January 3, 2008
This afternoon, I taped a 90-minute “webinar” on the subject of Negotiation. One key to effective negotiation is gaining real commitment. This is a skill or process that many new entrepreneurs only learn the hard way. A common scenario involves a couple of business partners who spend several weeks discussing, e-mailing and meeting to structure a deal or a venture. The discussion ends and they walk away, both sides thinking they have an understanding. [click to continue...]
by Kurt Schulzke on January 2, 2008
I’ve often wondered about this line from George H.W. Bush’s speech at the Republican Convention. Hard to believe that it’s already been 20 years. Maybe he actually meant “No new Texas!” It’s an easy mistake. But I digress.
About this time of year, with the holidays in the rearview mirror, the minds of the few remaining American taxpayers turn to (drumroll) taxes. The good news is that 2008 is here. The bad news [click to continue...]
