Thursday, October 14, 2010

It's Not Just About Foreclosure, Not Just About Mortgage Either

Here's from 'NoVa' at Yahoo Board:

"The foreclosure process triggers negative accounting events, like recognizing what they call Day 1 and Day 2 losses on repurchases and REO's.

"Banks relied on their internal controls to recognize these business events, er,, foreclosures that leads to accounting entries that leads to financial statements. They relied on the CONTROLS surrounding the robo-signers which have obviously failed to detect or prevent false transactions.
"Shouldn't we be hearing in the news soon about financial restatements ? Their books are wrong and have been wrong over many years...

"CFO and CEO's signed accuracy statements for their enterprise with every SEC filing ... Talk about the ultimate leverage card to play against any firm or the entire industry - SEC accusations always KILL a firm."

He's saying it is SOX (Sarbanes-Oxley) violations.

Don't hold your breath for the SEC crooks to do anything, but ...

Here's a good article by Gonzalo Lira titled "Second Leg Down of America's Death Spiral", discussing the implications of what the MSM has been trying to paint as "technical" glitches. (He doesn't mention SOX.)


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