Accounting News Roundup: Bank Tax Scrapped; Deloitte Cleveland Names New Managing Partner; What's the Future of Internal Audit? | 06.30.10

Financial-Rules Redo Passes Major Hurdle [WSJ]
Who knew that lobbyists could be so effective? "Democrats initially proposed the $18 billion tax on the nation's largest banks and hedge funds to cover the cost of expanding government oversight of financial services, among other things. But the small number of Republicans crucial to the bill's passage balked at the fee, which was added at the last minute to the legislation.

With more than a year's worth of work in the balance, Democrats ditched the levy on Tuesday. Instead, they agreed to offset the bill's costs by winding down early the $700 billion Troubled Asset Relief Program and assessing a more modest fee on banks through the Federal Deposit Insurance Corp."

Volcker Said to Be Disappointed With Final Version of His Rule [Bloomberg]
If you go to the trouble of getting your name on the rule, with specific ideas in mind about what said rule entails, you'd be pretty upset if lobbyists hacked up to the point that it's hardly recognizable. Plus octogenarians are probably used to getting their way.

"Volcker, the 82-year-old former Federal Reserve chairman, didn’t expect the proposal to be diluted so much, said a person with knowledge of his views. He’s content with language that bans banks from trading with their own capital, the person said.

'The Volcker rule started out as a hard-and-fast rule on risky trades and investments,' said Anthony Sanders, a finance professor at George Mason University School of Management in Fairfax, Virginia. 'But through negotiations, it was weakened and ended up with many loopholes.' ”

How Not To Look Desperate When Looking for Your Next Finance Job [FINS]
Because we know there are plenty of you out there.

Deloitte names Craig Donnan managing partner in Cleveland [Crain's Cleveland]
Cake party? Mr Donnan takes over for Pat Mullin who has been the managing partner of the office since 1999.

The future of the internal audit profession [Marks on Governance]
"If we are to be relevant, chief audit executives (CAEs) have to refocus on providing assurance regarding how well management identifies, evaluates, responds, and manages risks – including the controls that keep risk levels within organizational tolerances."

The Problem With Unreported Income [You're the Boss/NYT]
The problem being that if you're going to have one helluva time selling your business if a decent portion of its revenues are unreported.

"Legal and moral issues aside, there is only one way to view unreported income when it comes time to sell the business: forget that money ever existed. If you can only manage what you can measure in business, then the same holds true for what you can sell."

AIG hires ex-Lehman lawyer as compliance head [Reuters]
As long as AIG doesn't ask about arcane accounting disclosures, this should work out fine.

Comments