Tuesday June 22, 2021
One of my twelve recommendations in Conquer Accounting is that students should subscribe to the Wall Street Journal. A student subscription is only a dollar a week.
Accounting students will greatly increase their understanding of business context. Here are some examples from today's WSJ.
Auditors See Improved Conditions
of 5,891 companies audited last year 18.8% received a goinjg concern warning . Companies included Hertz, Dave and Buster's, and Norwegian Cruise Line. Hertz took BK the other two dide not.
Ex Trader Sentenced in Spoof Crackdown
A Deutsche Bank futures trader was convicted of manipulating gold and silver prices and sentenced to one year and a day in prison. Spoofing involves sending and then cancelling orders to manipulate the3 market for one's own gain. His lawyers calimed that bluffinga nd misdirection wer commonplace tactics at the time. The Judge did not buy that story.
Lordstown Official Sold Shares Ahead of Financial Report.
Lordstown has yet to sell an electric truck so not surprising they are not making any money;. But executives sold shares for millions of dollars prio to reporetin a net loss of 23 cents a share for the quarter. This is known as insider trading.
Goldman Rebuffed on Bar for Fraud Suits
The US Supreme Court rejected Goldman's request to raise the bar (amount)for shareholder lawsuits alleging fraud on GS part. The lawsuit claimed GS had inflated its share price in 2007-2009 by claiming it compiled with ethical rules when in fact it had undisclosed conflicts of interest in selling mortgage backed securities.
Now here is the funny part.
"Our clients interests always come first and our reputation is one of our most important assets," said the firm.
Read about it at hthis link
As for GS stellar reputation read about their recent fine of $2 billion in Malaysia
