The Street had an interesting piece about Fannie Mae's most recent "out-of-period adjustments," which is Fannie's casual way of explaining away a $4 billion error over five consecutive quarters from Q4 2011 through Q4 2012, as well as Q2 2010. While Fannie Mae did disclose the errors, one reason they did not attract more scrutiny […]
Susan McFarland will be the third CFO at FanMa since the company entered conservatorship nearly three years ago.
In case you lost count, the U.S. taxpayer has thrown $86 billion at the company but Suz is still “incredibly excited to join the Fannie Mae team and to help lead the company into the future.” Mmmmhmmm. [WSJ]
“This administration will side with those who want fundamental change. It is not tenable to leave in place the system we have today. We will not support returning Fannie and Freddie to the role they played before conservatorship, where they fought to take market share from private competitors while enjoying the privilege of government support.”
~ The Treasury Secretary has had it up to his coif.
Barclays in Sanctions Bust [WSJ]
“Barclays PLC agreed to pay $298 million to settle charges by U.S. and New York prosecutors that the U.K. bank altered financial records for more than a decade to hide hundreds of millions of dollars i nto the U.S. from Cuba, Libya, Iran and other sanctioned countries.
Monday’s settlement agreement of criminal charges is an embarrassment for Barclays, which became a major player on Wall Street by snapping up the collapsed U.S. operations of Lehman Brothers Holdings Inc. in 2008 and has been trying to burnish the U.K. bank’s reputation on both sides of the Atlantic Ocean as a good corporate citizen.”
Cashing in on cleantech [The Guardian]
“While E&Y claims to be the first to set up a practice specifically for cleantech, in recent years PricewaterhouseCoopers (PwC), Deloitte Touche Tohmatsu, KPMG and E&Y have all launched dedicated practices for sustainability and climate change.
Steven Lang, who leads the cleantech division in the UK and Ireland, recently explained the attraction to Business Green: ‘We’ve seen major amounts of capital flowing into clean energy and clean technology and governments increasingly want to use the sector as a driver for international competitiveness.
‘The drivers are there for this to be a major growth area over the next five years.’ ”
GM IPO filing expected Tuesday [Reuters]
It’s like you never left, GM. “General Motors Co has completed the paperwork for an initial public offering, and timing of its filing with the U.S. securities regulators rests with the board of the top U.S. automaker, sources familiar with the process said on Monday.
The initial prospectus, expected to be for $100 million, is likely to be filed with the U.S. Securities and Exchange Commission on Tuesday, two people said, asking not to be named because the preparations for the IPO are private.”
IASB details recruitment process for Tweedie replacement [Accountancy Age]
“In a newly created section of the IASB website, the body has outlined the process it has followed since September 2009, as it searches to replace chairman Sir David Tweedie, who steps down in June 2011.
Among the documents is a letter sent to the European Commissioner’s office on 3 December, 2009, from Sir Bryan Nicholson, who has led the IASB’s recruitment process.”
Woman due in court for pie attack on US Sen. Levin [CT]
“A woman accused of hitting U.S. Sen. Carl Levin in the face with an apple pie during the Armed Services Committee chairman’s constituent meeting in northern Michigan is due in court.
Twenty-two-year-old Ahlam M. Mohsen of Coldwater will be arraigned Tuesday. She is being held without bond after being arrested Monday on a felony charge of stalking, and misdemeanor counts of assault and disorderly conduct”
Facebook Partnership Is Proven by $3,000 Check, Lawyer Says [Bloomberg]
“The western New York man suing over claims he owns 84 percent of Facebook Inc. has a copy of a $3,000 cashier’s check his lawyer says is proof of a contract with Chief Executive Officer Mark Zuckerberg.
The purported 2003 check is made out to Zuckerberg and dated three days before Paul Ceglia claims the two men signed a contract, according to the attorney. That agreement, Ceglia said in court papers, entitles him to control of the world’s biggest social networking website.”
Conference To Debate Future Of Fannie, Freddie [NPR]
Euthanasia seems like a good option here.
BP Completes Cementing Macondo Oil Well From Top [Bloomberg]
“BP Plc completed a cement plug at the top of its Macondo well in the Gulf of Mexico, sealing off the source of millions of gallons of oil spewed into the sea after a drilling rig exploded in April.
The procedure completes the so-called t stage for BP is to finish a relief well to inject cement at the bottom and ensure there’s no leakage inside the 13,000-foot-long (3,962 meters) well bore beneath the seabed, National Incident Commander Thad Allen said yesterday.”
Ten Signs It’s Time to Leave Your Job: The Finance Edition [FINS]
Check yourself for some of these symptoms: “You’ve been holding back from voicing your grievances.”; “You have no clue where the company is headed.”; “You start to believe you can’t do better.”
And that’s just in the first five listed.
Altus completes PricewaterhouseCoopers deal [Bloomberg BusinessWeek]
PwC sells their real estate appraisal management for, what we can only assume to be, a decent chunk of change.
H&R, Jackson Hewitt shares fall on new IRS rule [Reuters]
“Shares of top two U.S. tax preparers H&R Block Inc (HRB.N) and Jackson Hewitt Tax Service Inc (JTX.N) fell Thursday on the Internal Revenue Service’s decision to eliminate debt indicator for tax-refund loans.
On Thursday, the IRS said starting with next year’s tax filing season it will no longer provide tax preparers and associated financial institutions with ‘debt indicator,’ which is used to facilitate refund anticipation loans (RALs).”
Two UHY LLP Partners Recently Named to Prominent Standard-Setting Implementation Groups [Market Wire]
“The national CPA firm of UHY LLP announced today the recent appointment of Houston-based partner Ana Denena to the International Accounting Standards Board’s (IASB) Small and Medium-sized Entities Implementation Group. In a separate appointment, the firm announced that Maryland-based partner Jennine Anderson was named to the Financial Accounting Standards Board’s (FASB) resource group on non-profit entities.”
PCAOB Adopts New Risk Assess. Stds; Issues Release on Failure to Supervise [FEI Financial Reporting Blog]
As we mentioned yesterday, the PCAOB has been busy. Francine McKenna guest-blogged over at FEI and gives the rundown.
Fannie Quarterly Loss Is Smallest Since 2007 [WSJ]
FTW? “Fannie Mae posted a $1.2 billion net loss for the second quarter, the smallest loss in three years, amid signs that the massive wave of souring loans that brought down the mortgage-finance giant may be easing. But Fannie still asked the U.S. government for an additional $1.5 billion.”
District Court Issues Order in Snipes Case [TaxProf Blog]
Just when you thought it was over.
If you’re not getting cloud computing you’re a loser [AccMan]
That is, you’ve got almost nothing to lose by going for it.
Deloitte leadership race reduced to two hopefuls [Accountancy Age]
“he contest to replace John Connolly as leader of Deloitte in the UK will involve just two members of the firm’s board.
The contenders vieing for the top job are Martin Eadon, head of audit, and David Sproul, head of tax. Sproul joined Deloitte when the firm acquired Andersen in the UK on the back of the Enron crisis
Both candidates gave presentations at the firm’s partner conference on 6 July but no further campaigning is expected.”
Rangel Is in Talks to End Ethics Case [WSJ]
“Negotiations between lawyers for Rep. Charles Rangel (D., N.Y.) and House ethics investigators continued on the eve of a public hearing Thursday that was expected to lay out the charges aga ethics panel announced last week its plans to present a case against Mr. Rangel, his lawyers have been in private discussions about a possible settlement to avoid a hearing. A central issue is the wording of the House ethics panel’s findings about Mr. Rangel’s alleged ethics violations, according to a person familiar with the case.”
Audit reveals billions of dollars of Iraqi oil funds gone missing [Guardian]
Hard to believe that there would be trouble tracking the money over there, “The US department of defence has called in forensic accountants to help track $8.1bn (£5.2bn) of $9.1bn in Iraq’s oil revenue entrusted to it after the fall of Baghdad, following an official audit that revealed the money was missing.
The funds were to be used for spending on reconstruction during 2004-07, a period when Iraq was under weak transitional rule.
The report was issued today by the Special Inspector General for Iraq Reconstruction, which had previously criticised poor book-keeping by senior officials throughout the last seven years.”
Fannie Mae, Freddie Mac Still Too Big to Nail [Jonathan Weil/Bloomberg]
“This month Congress passed the 2,323- page Dodd-Frank Act without any clear understanding of why the financial crisis happened — and without doing a thing to address Fannie and Freddie, which were central players. Now the Obama administration says it will deliver a reform proposal to Congress by January on the nation’s housing-finance system, including Fannie and Freddie. Yet the government still hasn’t undertaken any comprehensive inquiry into why these companies blew up and who was at fault.”
IMA Launches New Website to Support Accounting Community [Business Wire]
“IMA™, the association for accountants and financial professionals in business, unveiled [Wednesday] its new website, now making it even easier for professionals to experience IMA’s range of valuable resources and services. The website can be accessed at www.imanet.org.”
How to Get a Job in Financial Regulation [FINS]
The SEC, FDIC and CFTC are all hiring in the wake of Dodd-Frank. But landing a gig with the Feds isn’t like landing a job anywhere else. FINS breaks it down for you.
George Carlin Never Would’ve Cut It at the New Goldman Sachs [WSJ]
What’s next? They take your will to live? “The New York company is telling employees that they will no longer be able to get away with profanity in electronic messages. That means all 34,000 traders, investment bankers and other Goldman employees must restrain themselves from using a vast vocabulary of oft-used dirty words on Wall Street, including the six-letter expletive that came back to haunt the company at a Senate hearing in April.”
Alex Rodriguez Objects to Rangers Bankruptcy Plan [Bloomberg]
Chances are, A-Rod doesn’t know the particulars but he would like the $24.9 million he’s owed.
See you Monday, capital market servants. It’s okay, tax warriors – Just think, two weeks from today and you’ll be sleeping in.
• KPMG severs Iran ties [FT]
T Fly and Co. has pulled the plug on Iran after big pressure from the UANI, “Tom Wethered, KPMG International’s general counsel, wrote to UANI on Thursday that the accountancy network had terminated the membership of Bayat Rayan, one of Iran’s biggest accountants.” The FT reports that the firm cited “serious and escalating concerns,” about the country’s government.
• Imagine: iPad App l Statements [XBRL Business Information Exchange via CPA Trendlines]
Someone make this happen ASAP. “Imagine it. Everyone connected by the Web, not the current Web but the Semantic Web. iPads, iPods, iPhones, Androids, Smartphones; maybe a few PCs will still be around. IFRS used globally. Financial information in XBRL making it dynamic like a pivot table, rather than static like the legacy paper statements.”
• Is Hiring More IRS Employees ‘Job Creation’? [The Atlantic]
There’s a lot of hysteria over the 16,000-some odd new IRS agents that will be running around the country trying to steal your freedom. Those are real jobs though.
• Koss Fraud: Unrecorded revenue? [Fraud Files Blog]
Tracy Coenen kicks around another theory of how alleged shopaholic Sue Sachdeva hid her embezzlement from Grant Thornton, “I’ve heard from a few sources who I consider to be very reliable that Sachdeva hid her theft by not recording revenue. This would mean that Koss’s revenue was understated by $31 million during the time she was committing her theft.” Tracy points out that this method would be “messy” but “There is almost no chance that the auditors will discover the theft and the cover-up. The bulk of the auditors’ work is spent on the balance sheet. So long as transactions related to the theft don’t show up in the ending balances of the balance sheet accounts, she’s pretty safe there.”
• Singer Toni Braxton bobbles tax bill [Tax Watchdog]
Toni Braxton really needs help. She now owes the IRS nearly $400k after a $71k tab from last summer. We’ll say it again – Get Ludacris on the phone.
• 10 illegal aliens in S.C. admit to bilking IRS out of $13 million [Greenville Online]
Who do the teabaggers get mad at for this one? Don’t they hate the IRS and illegal aliens equally? We can only hope that this will cause their heads to explode. Oh, and because it’s in South Carolina we can probably expect a lynching of everyone involved.
• Job of the Day: Fannie Mae Needs a Experienced Accountant [GC Career Center]
Four to six years experience, CPA required. Responsibilities include: Compile, review, analyze, and record financial information to the general ledger. Complete monthly closings. Prepare balance sheet and profit and loss statements, consolidated financial statements, and other accounting schedules and reports. Located in DC Metro. You!
Fannie Mae needs an experienced accountant that will perform day-to-day accounting operations for Fannie Mae’s investments in Low Income Housing Tax Credit & CI partnerships, including the impacts of consolidating those assets.
The position requires a four to six years experience and a CPA license.
Get more details on the position, located in Washington, DC after the jump.
Company: Fannie Mae
Title: General Accountant, Partnership Accounting
Location: Washington, D.C.
Experience Required: 4 – 6 years
Description: Apply comprehensive knowledge of accounting principles, concepts, practices, and standards in performing complex duties related to preparing and analyzing financial information to record transactions, prepare reports, and review and verify accuracy. Work with consultants, auditors, and others to analyze and provide information on operational, reporting, or system impact related to policy changes and new products. Contribute to special projects. May train staff.
Responsibilities: Compile, review, analyze, and record financial information to the general ledger. Complete monthly closings; Prepare balance sheet and profit and loss statements, consolidated financial statements, and other accounting schedules and reports; Prepare daily, weekly, and monthly reconciliations to ensure general ledger account information is accurate, consistent, traceable, and auditable; Execute and manage timely, accurate transactions; Identify control weaknesses, communicate to management, and participate in making remedial changes to tighten and enhance controls; Provide requested information to auditors, consultants, and others on significant matters requiring coordination; May design, modify, install, and/or maintain accounting systems to ensure adequate recognition of financial transactions; May perform moderately complex accounting projects or participate as a team member on highly complex projects; Understand and analyze partnership financial statements and Schedule K-1s.
Qualifications: Bachelor’s Degree or Equivalent; CPA; 4-6 years or equivalent experience.
Fannie is working on getting things back on track and they need good people that can handle some financial reporting duties. Everything from 404 to implementing new GAAP, to SEC reporting. Plus, you’d kinda be serving your country.
Check out the details for a Financial Reporting Analyst position in Washington, D.C. after the jump.
Company: Fannie Mae
Title: Financial Reporting Analyst
Location: Washington, D.C.
Minimum experience: 4 years
Description: Reporting to a Manager of Financial Reporting, this position is part of a team responsible for preparing analysis of monthly, quarterly and annual corporate financial results and preparation and review of certain monthly and regulatory reporting.
Responsibilities: Preparation and review of analysis of monthly, quarterly and annual financial results for management, our regulators and external auditors; Coordination with business units and other areas within Controllers/Finance to ensure results are reasonable and variances are researched and explained; Supporting and managing timely and accurate reporting of financial results in various deliverables; Participating in special projects, including automation efforts and other improvements to the reporting process/efforts, to streamline processes to increase efficiency and effectiveness of group’s reporting and financial analysis; Implementation of new GAAP standards, as necessary; Participating in SOX 404 efforts, including documentation of process and facilitating testing of controls, as necessary; Assisting with Finance compliance efforts, as necessary; Assisting SEC reporting team, as needed, with preparation and review of external filings with the SEC (10K, 10Q) or implementation of new SEC standards.
Requirements and Skills: Bachelor Degree, or equivalent; CPA Preferred; 4-6 years of experience in accounting-related position with progressively challenging experience; Experience with and understanding of financial statements and current U.S. generally accepted accounting principles (GAAP), including experience in analyzing financial statements and corporate results
From a reader:
Here are two headlines, in this order, on CPA Daily Letter this morning. Fannie Mae decides to rent to people that are currently not able to pay their mortgage? Peaked my interest and made me ask the question, “WHAT?” Then, I scrolled down and read the second headline…and then thought…well, yeah…that would be the necessary outcome…time for a new business model anyone?
While the reader has a good point (i.e. Fannie Mae is still a giant shitshow and should seriously consider going back to the drawing board) we’re more curious as to who over at the CPA Letter has the sense of humor. Then again, it could be one giant coincidence.