NEW YORK (Reuters) – JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) and a major insurer have agreed to a $300 million settlement to resolve accusations that they forced homeowners into over-priced property insurance and entered into kickback arrangements that inflated the policies’ prices.
The lawsuit being settled – one of several targeting large U.S. banks over force-placed insurance – said that the improper practices unjustly enriched JPMorgan and insurer Assurant Inc by more than $1 billion since 2008.
NEW YORK, Aug 19 (Reuters) – Many financial auditors are
failing to properly check for accounting fraud risks at U.S.
broker-dealers or test controls over customer funds, new
inspections mandated by Congress after Bernard Madoff’s massive
Ponzi scheme have found.
In its second inspection report on broker-dealer audits, the
Public Company Accounting Oversight Board, an auditor watchdog,
said it found problems at 95 percent of the 60 audits it
NEW YORK (Reuters) – U.S. regulators on Thursday asked a federal court not to dismiss their lawsuit against a bank tied to the blow-up of brokerage Peregrine Financial, saying the bank helped bring about millions of dollars of losses for Peregrine customers.
At issue is a lawsuit filed by the U.S. Commodities Futures Trading Commission in June against U.S. Bank N.A., a unit of U.S. Bancorp, based in Minneapolis. The lawsuit accused the bank of letting Peregrine founder Russell Wasendorf Sr secure loans against money that belonged to his brokerage’s customers.
NEW YORK (Reuters) – A former chief accountant of the U.S. Securities and Exchange Commission has been named to the private board that sets corporate accounting standards as it conducts a controversial overhaul of corporate America’s bookkeeping.
James Kroeker, 44, will be a vice chairman of the U.S. Financial Accounting Standards Board, the board’s parent organization, the Financial Accounting Foundation said in a statement on Wednesday.
SHANGHAI/NEW YORK (Reuters) – China’s securities watchdog said it is ready to turn over audit documents of a Chinese company listed in the United States to U.S. regulators, signaling a second breakthrough in a two-year international dispute over accounting scandals.
The U.S. Securities and Exchange Commission (SEC) has been struggling to get papers out of China to investigate possible accounting fraud at dozens of Chinese companies listed on U.S. stock exchanges. China, for years, has resisted turning over documents because of state secrets and sovereignty concerns.
NEW YORK (Reuters) – The U.S. House of Representatives is expected to vote soon on whether an auditor industry watchdog can force companies to switch auditors every few years, breaking up some business ties that have lasted over a century.
Regulators in the United States and Europe have been considering limits to audit firms’ terms after auditors failed to warn of problems at banks that failed in the 2007-2009 global financial crisis.
NEW YORK, June 27 (Reuters) – The biggest overhaul of
insurance accounting in 30 years will advance a step on Thursday
with the release of a proposal that some insurers fear could
make their profits more volatile.
In a move to align financial statements worldwide, the U.S.
Financial Accounting Standards Board (FASB) aims to shine a
light into what some call the “black box” of insurers’ finances.
NEW YORK (Reuters) – U.S. companies would have to regularly assess their ability to continue as a going concern under a proposal issued on Wednesday by accounting rule-makers, an attempt to ensure investors get timelier warnings when companies get in trouble.
The proposal from the U.S. Financial Accounting Standards Board calls for companies to evaluate each quarter their ability to survive as a going concern, or stay afloat and pay its obligations. Currently, the company’s auditors are primarily responsible for making this evaluation.
NEW YORK, June 23 (Reuters) – As the U.S. market for Chinese
stock offerings revives, some experts are warning that American
investors could be left out in the cold if a company faces
problems, due to an unusual business structure employed by many
The structure, known as a variable interest entity, or VIE,
is designed to let companies bypass Chinese government bans on
foreign ownership in some business sectors.
June 7 (Reuters) – The Obama administration is under
pressure from large corporations and a senior U.S. senator to
revisit oversight of Chinese corporate audits at upcoming summit
meetings, as disputes persist despite a partial deal on the
issue reached in May.
U.S. President Barack Obama is set to meet Friday and
Saturday with Chinese President Xi Jinping. Their discussions
were likely to focus on other topics, but New York Senator
Charles Schumer has urged the two leaders to take up the