See AU Section 332 Auditing Derivative Instruments, hedging Activities and Investment in Securities. * Every written instrument is by definition the memorialization of an event. Absent the event in the real world, the instrument is worthless at best and at worst fraudulent. This is derived from the my knowledge of generally accepted accounting principles (GAAP) …
It seems I stirred up a tempest with my blog this morning. My position is that applying generally accepted accounting principles and the accounting standards promulgated by the FASB, you must accept that Servicer advances are either a third party payment that reduces the account receivable of the creditor, or the advances are without effect …
Tempest Over Servicer Advances to Investors After Borrower Stops Payment Read More »
Just a short note on this. Think about it. Why would he have taken the money and used it for a condo when he had to cover bank losses on mortgage loans that were in default? Answer: the bank had no losses, so there was nothing to account for. This money wasn’t income. It couldn’t …
MOST POPULAR ARTICLES GET COMBO TITLE AND SECURITIZATION ANALYSIS – CLICK HERE BY ‘NANCY DREW” In California, OR, WA, CO (non judicial states) place an Automatic Stay one must file Bankruptcy “BK” which stops notice of defaults? sadly allowing substitute trustee to act as robo-mill and includes bank attorneys who don’t have to reveal ‘security’ …
Leslie F. Seidman Chairman, FASB EDITOR’S COMMENT: You probably don’t know the name Seidman, much less Leslie Seidman. But back in the 1960’s when the accounting rules were first being changed (causing Briloff to write the book Unaccountable Accounting), the Seidman accounting firm was one of the few who understood the significance and moral hazard …
Leslie Seidman: Lighting Up a Dark Room at the FASB Read More »
This is pretty aggressive and pretty abusive. I don’t know how under GAAP this follows the rules whatsoever,” he said, referring to Generally Accepted Accounting Principles.“That reeks of an auditor who, rather than being really truly independent, is beholden to management,” he said, adding that the S.E.C. and the Justice Department should follow up on …
Lehman Execs and Auditors Face Civil and Criminal Inquiries and Lawsuits Read More »
From “Anonymous” Editor’s Post: It’s always a pleasure to read something where someone actually knows what they are talking about. The following post was picked up from the comments. The key points that are relevant to the Qualified Written Request and Discovery are 1. In the shuffling of paperwork, where was a “true sale” of …
“Each year they will launder more money back into the system and back onto the books so it becomes “on balance sheet” but the explanation of where the profits came from will be double-talk. But as long as we let them do it, they will be using the proceeds of purse snatching from the little …
Editor’s Note: Thanks to Allan again. If there is one person in a relatively high position who has understood the subprime crisis, acquired the information on securitization, named the villains and described their practices separating honest people from their money it is Elizabeth Warren, whose was barely heard over the din of back-slapping during the …
Bostonian of the Year: Elizabeth Warren, Watchdog Read More »
