June 24, 2018

Reno’s “Hot August Nights” Goes For-Profit and Skips Town?

Though the connection between the non-profit Hot August Nights organization that’s been putting on Reno’s biggest party for 24 years and the newly-registered for-profit Hot August Nights of Las Vegas is unclear, what is clear is that part of the event will be held in Long Beach this year due to “horrific” costs to put the event on in Reno.

Reno, if you don’t already know, is in pretty bad shape. I used to live there so I know that it always was but it’s in really bad shape right now. With the iconic Fitzgerald’s Hotel and Casino indefinitely boarded up directly under Reno’s “Biggest Little City in the World” sign as a direct result of the Corus Bank failure 1,500 miles away in Chicago back in late 2009, downtown looks more destitute than ever. I take full artistic license for use of the word “iconic.” This is Reno we’re talking about.


You’d think Reno city commissioners would want to encourage fun and leisure, mostly through the only event any of us with the big money to the West are familiar with (Hot August Nights) but all signs point to the city losing it.

On the same day paperwork was filed in Nevada to establish the for-profit, non-profit Hot August Nights officials announced part of the event would be held in Southern California in 2011.

There’s been a bunch of bitchfighting in Reno (and neighbor Sparks, who gets some of the tourism run-off for the event) and it continues.

We don’t expect you to be familiar with the Reno area (unless you happen to work for Deloitte or E&Y in town, though we don’t like those odds) so for a little background on Hot August Nights, it’s a yearly car show stamped as family fun for everyone. The event costs $700,000 to put on each year according to organizers who swear they aren’t looking to move the show to Long Beach in 2012.

The Reno Gazette-Journal breaks down the non-profit side:

In the 2004 tax year, Don Schmid, then listed as executive director, was paid $93,962 in salary.

On the nonprofit corporation’s 2008 income tax return, current executive director Bruce Walter is listed as collecting $256,890 in salary and $11,940 for a housing allowance, resulting in total compensation of $268,830.

Yes, I’m sure it’s the costs of putting on the event that are inspiring a move. Anyone been to a convention in Reno lately? It’s got to be the cheapest place in the country if you don’t count middle states. You’re telling me it’s cheaper to host the event in Long Beach?

For-profit Hot August Nights corporation created in Vegas [The Reno Gazette-Journal]

Though the connection between the non-profit Hot August Nights organization that’s been putting on Reno’s biggest party for 24 years and the newly-registered for-profit Hot August Nights of Las Vegas is unclear, what is clear is that part of the event will be held in Long Beach this year due to “horrific” costs to put the event on in Reno.

Reno, if you don’t already know, is in pretty bad shape. I used to live there so I know that it always was but it’s in really bad shape right now. With the iconic Fitzgerald’s Hotel and Casino indefinitely boarded up directly under Reno’s “Biggest Little City in the World” sign as a direct result of the Corus Bank failure 1,500 miles away in Chicago back in late 2009, downtown looks more destitute than ever. I take full artistic license for use of the word “iconic.” This is Reno we’re talking about.


You’d think Reno city commissioners would want to encourage fun and leisure, mostly through the only event any of us with the big money to the West are familiar with (Hot August Nights) but all signs point to the city losing it.

On the same day paperwork was filed in Nevada to establish the for-profit, non-profit Hot August Nights officials announced part of the event would be held in Southern California in 2011.

There’s been a bunch of bitchfighting in Reno (and neighbor Sparks, who gets some of the tourism run-off for the event) and it continues.

We don’t expect you to be familiar with the Reno area (unless you happen to work for Deloitte or E&Y in town, though we don’t like those odds) so for a little background on Hot August Nights, it’s a yearly car show stamped as family fun for everyone. The event costs $700,000 to put on each year according to organizers who swear they aren’t looking to move the show to Long Beach in 2012.

The Reno Gazette-Journal breaks down the non-profit side:

In the 2004 tax year, Don Schmid, then listed as executive director, was paid $93,962 in salary.

On the nonprofit corporation’s 2008 income tax return, current executive director Bruce Walter is listed as collecting $256,890 in salary and $11,940 for a housing allowance, resulting in total compensation of $268,830.

Yes, I’m sure it’s the costs of putting on the event that are inspiring a move. Anyone been to a convention in Reno lately? It’s got to be the cheapest place in the country if you don’t count middle states. You’re telling me it’s cheaper to host the event in Long Beach?

For-profit Hot August Nights corporation created in Vegas [The Reno Gazette-Journal]

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The Art of Bank Failures

alan_greenspan_pancake.jpgDeutsche Bank wins the prize for the most well-capitalized art collection, racking up 53,000 works in one of the largest corporate art collections in the world – as of 2004, worth an estimated $124 million (USD). Does that fall under PP&E? How does one depreciate a Cezanne hanging in a corporate office anyway? Oh wait, you don’t.
In honor of the year anniversary of Lehman’s fall, we find it worth noting here that Lehman’s Dick Fuld and his wife found that when you’re in desperate need of a capital infusion and facing epic failure, pawning off your precious fine art pieces works in a pinch.
More, after the jump


Guardian UK:

The bankrupt investment bank Lehman Brothers wants to sell at least $8m (£5.2m) worth of the art collection that once decorated its offices. The news comes as $20m of postwar art, put up for sale by the former Lehman boss Richard Fuld and his wife Kathy, goes on the block tonight at Christie’s in New York.

That’s got to hurt.
But Dick isn’t alone. If only banks would have considered these precious assets while spiraling down the toilet.
Portfolio has a do-not-miss on the art collections left behind by bank failures:

From coast to coast, millions of dollars of corporate art that once hung in the offices of well-known banks has itself become entangled in the fallout from the financial crisis. The fate of that artwork is still being sorted out, along with the assets involved in many of the unprecedented bank failures and resulting mergers that took place last year. Some of the surviving financial institutions appear to be holding onto the valuable artwork for their own collections, despite the chance to cushion their coffers with its sale. Others are selling the art or donating it to local museums and nonprofits.

Well, wait a minute, will this art have the same fate as the $4 billion in WaMu deposits the failed thrift is fighting to get back from JP Morgan? Just sayin.
This is nothing new. In 1991, the FDIC netted a cool $250,000 for the art collection of failed Boston Trade Bank. Though that was a pathetic catch in comparison to the $800,000 the collection of 219 pieces was estimated to be worth but hey, every little bit helps.
Wonder why no one’s thought to tap AIG for some precious paintings? Surely General Motors has a few pricey pieces lying around corporate offices, let’s use that to recoup that $23 billion American taxpayers may never see again!

The CPA Exam for Commitmentphobes

Editor’s note: Adrienne Gonzalez is founder and managing editor of Jr Deputy Accountant as well as regular contributor to leading financial/investment sites like Seeking Alpha and GoldmanSachs666. You see all of her posts for GC by going here. By day, she teaches unlicensed accountants to pass the CPA exam, though what she does in her copious amounts of freetime in the evening is really none of your business. Follow her adventures in Fedbashing and CPA-wrangling on Twitter @adrigonzo but please don’t show up unannounced at her San Francisco office as she’s got a mean streak. Her favorite FASB is 166.
The first time I addressed the CPA exam here on Going Concern, I may have given the firms a little too much credit. Keep in mind that I write from the perspective of a CPA Review Project Coordinator; in other words, I’ve heard every excuse in the book.
I need more time on my course. Work got really busy and…
Continued, after the jump


Listen, I understand that the CPA exam is a serious commitment. I also understand that first and second year new hires get worked like slave labor. What I do not understand is why this should be my problem 2 years after the student’s course expired with not a peep in between. Can you use this excuse in college? “Yeah, sorry I didn’t make it to my Final… um, I know it was 3 years ago but can I just take it again? I got really busy.” I dare you to try.
What I’ve learned from my time in the CPA Review trenches – something that I will take with me for the rest of my life – is quite simple. In the time it takes to come up with reasons why you don’t have the energy, time, knowledge, or ability to pass the CPA exam, you could have already passed it.
Yes, you. You could have passed this thing years ago. All of a sudden you’re staring down a promotion and realize that there’s no way you’ll be able to make the leap with that obnoxious colleague who passed the exam in 4 months. How can you possibly compare?
Well you can’t, first of all. Second of all, I’m willing to bet my entire inventory of Wiley CPA Review books that he’s full of shit. So is the guy who said he had an hour and a half left when he walked out of FAR, as is the chick who says she got a 95 on BEC (she’s our student, you know, and she got three 60s before that, not to mention cussed out by me for an hour before she finally passed). They are not you. And you, little CPA exam candidate, are the only person who matters in all of this.
Not your parents, not your boss, not your firm and not even your significant other. You. Is this what you want to do with your life or not?
If it was, you’d be at the Prometric center in full war paint ready for battle 45 minutes before they open, not calling me trying to explain how complicated your life got in the two years since I’ve heard from you. Apparently you forgot that you friended me on Facebook and I can see you filling out 79 quizzes in just three short hours.
What exactly are you waiting for? Time? Trust me, you’ll never have it.