Articles Tagged with ''U.S. Securities and Exchange Commission''

SEC Charges Two at American Home with Fraud

The Securities and Exchange Commission (SEC) today charged two former executives at American Home Mortgage Investment Corporation with accounting fraud. The charges against the heads of the now-bankrupt former Alt-A lender out of New York stem from their alleged engagement in a pattern of false and misleading claims that concealed financial losses from investors.
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More Glib Press on FASB

If you read the headlines (and most people don’t bother to go much farther beyond the headline than the lead paragraph –- to our collective disgrace), you already think FASB eased the rules for measuring fair value on Thursday. You might believe that it has at last caved in to pressure from banks and Congress, and decided to allow “preparers” and their auditors to use judgment when valuing illiquid assets.
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Levitt: Proposed Accounting Changes Will 'Obscure' Impairments

Former Securities and Exchange Commission chairman Arthur Levitt fired a strong volley Thursday morning against the so-called mark-to-market lobby in a Washington Post op-ed, saying that proposed changes to key accounting rules governing the valuation of distressed assets would "obscure" and potentially "bury" the full extent of impairments on bad loans and ill-advised investments made by banks and other financial institutions.
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SEC's Probe into Subprime Mortgages Continues

The mortgage industry remains squarely in the sights of a series of investigations by the Securities and Exchange Commission, an SEC commissioner said in Congressional testimony last Friday. The regulator continues to investigate lenders, key issuers of subprime MBS, and credit rating agencies for evidence of illegal activity, SEC commissioner Elisse Walter told members of the House Financial Services Committee.
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Senators Push for Rule Against Short Sales

Sen. Ted Kaufman, D-Del., in his first bill proposal since being sworn in to Congress in mid-January, submitted to the Securities and Exchange Commission on Monday a bipartisan legislation that aims to reinstate the so-called "uptick rule" that prohibited short sales from the Depression era until its repeal in mid-2007.
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Government to Take Up to 36% Citi Stake

Citigroup Inc. [stock C][/stock] with the U.S. Treasury Department on Friday announced it would exchange common stock for the preferred securities obtained by the Treasury through the Capital Purchase Program (CPP), effectively increasing the government's share of the company to 36 percent. The transaction was designed to increase Citi's tangible common equity and restore investor confidence "without any additional U.S. government investment," the bank said.
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Merrill Posts $15.84 Billion Q4 Loss

Merrill Lynch and Co. reported Tuesday a $15.84 billion loss -- or $9.95 per share -- in the fourth quarter of 2008, according to a report filed with the U.S. Securities and Exchange Commission.  Bank of America Corp. [stock BAC][/stock], which acquired Merrill Lynch in early September, estimated in January that Merrill would lose $15.31 billion in the fourth quarter --  $533 million less than the actual loss.
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OTTI Rules Tweaked or Sharpened?

It appears a cranky FASB, responding to a flood of comments -- some ill-informed, a bunch form letters -- added a few teeth to what had been looking like a technical fix to other-than-temporary-impairment guidance for securitized assets. Last week the Financial Accounting Standards Board voted to issue FSP EITF 99-20-a, Amendments to the Impairment and Interest Income Measurement Guidance of EITF 99-20, but with additional language not included in the exposure draft.
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SEC: Mark-to-Market's Not the Problem

The Securities and Exchange Commission, in a Congressionally-mandated and extremely long 211 page report released Tuesday, suggested that a controversial accounting standard has had little to do with the financial meltdown and does not need to be suspended. The debate over of the effect of FASB Statement of Financial Accounting Standards No. 157, Fair Value Measurements, which went into effect November 2007, has been one rarely afforded to any accounting standard.
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