Happy Fourth, America!

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Happy Fourth! Just watched The Perfect Game, a remarkable movie based on a true story that captures the American dream at its best. America’s game — yes, baseball — played (mostly) by the rules. Immigrant* underdogs win through sheer grit, pluck, and faith against enormous odds. *Technically speaking, the kids in this story were not yet […]

“Right GAAP” and the move to IFRS

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Whenever “risk-management” professionals characterize their prognostications as near-certain, I get nervous.  Memories of the Berlin Wall, Black-Scholes, Long-Term Capital Management, Salomon Brothers and AIG dance before my eyes.  Today’s exhibit A: Bruce Pounder’s September 2, 2010 CFO.com article, “Why the SEC Won’t Flip the IFRS Switch.” Pounder’s “most significant” point — that “for the SEC […]

Watch Out for Falling Chinese Derivatives: Banks Run for Cover as China Hedges Fuel Bets

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As this story from Chinese markets shows, financial derivatives are often not what they seem.  If you plan to use derivatives to hedge risks, don’t forget the counterparty risks inherent in the derivatives themselves. Highlighting once again the risks of doing business with state-owned Chinese companies, banks and the derivatives market took another hit on […]