Comments on: Corporate governance chart of the day, Benford’s Law edition http://blogs.reuters.com/felix-salmon/2011/10/12/corporate-governance-chart-of-the-day-benfords-law-edition/ A slice of lime in the soda Tue, 21 May 2013 20:24:52 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: gleisdreieck http://blogs.reuters.com/felix-salmon/2011/10/12/corporate-governance-chart-of-the-day-benfords-law-edition/comment-page-1/#comment-31764 gleisdreieck Wed, 12 Oct 2011 22:03:37 +0000 http://blogs.reuters.com/felix-salmon/?p=10486#comment-31764 This is under the assumption that Benford's law will always be correct. If, due to other reasons, the reporting of accounting figures changes such that it is no longer correct, no fraud or 'massaging' is necessary This is under the assumption that Benford’s law will always be correct. If, due to other reasons, the reporting of accounting figures changes such that it is no longer correct, no fraud or ‘massaging’ is necessary

]]> By: G2G http://blogs.reuters.com/felix-salmon/2011/10/12/corporate-governance-chart-of-the-day-benfords-law-edition/comment-page-1/#comment-31763 G2G Wed, 12 Oct 2011 21:27:28 +0000 http://blogs.reuters.com/felix-salmon/?p=10486#comment-31763 To the extent that the chart reflects "Welch managed accounting", the root cause would seem to be the dramatic change over the time from a market based on "investment" to one that is built for "speculation". We need to address the root cause to cure the sympton - and then identify and prosecute the real fraud. To the extent that the chart reflects “Welch managed accounting”, the root cause would seem to be the dramatic change over the time from a market based on “investment” to one that is built for “speculation”. We need to address the root cause to cure the sympton – and then identify and prosecute the real fraud.

]]> By: klhoughton http://blogs.reuters.com/felix-salmon/2011/10/12/corporate-governance-chart-of-the-day-benfords-law-edition/comment-page-1/#comment-31762 klhoughton Wed, 12 Oct 2011 21:22:46 +0000 http://blogs.reuters.com/felix-salmon/?p=10486#comment-31762 "If Sarbox can’t do it, nothing will." Make you a deal: You pass SarbOx. I get to appoint Harvey "I fought for these guys so certainly I'll do everything I can to keep them honest" Pitt, Bill "Made my fortune selling these guys" Donaldson and Chris "never met a crooked businessman I didn't like" Cox as heads of the SEC. Followed by Mary "We should deregulate everything so I don't have to do jack at the CFTC and did I mention I created and ran FINRA" Schapiro. You spend the next several years waiting for discoveries of fraud. I get to steal to my heart's content (and then some), even after three years of turmoil produce blatant evidence of fraud (which my SEC gets to decide means nothing, and destroys). It's win-win, #OWS style. “If Sarbox can’t do it, nothing will.”

Make you a deal: You pass SarbOx. I get to appoint Harvey “I fought for these guys so certainly I’ll do everything I can to keep them honest” Pitt, Bill “Made my fortune selling these guys” Donaldson and Chris “never met a crooked businessman I didn’t like” Cox as heads of the SEC.

Followed by Mary “We should deregulate everything so I don’t have to do jack at the CFTC and did I mention I created and ran FINRA” Schapiro.

You spend the next several years waiting for discoveries of fraud. I get to steal to my heart’s content (and then some), even after three years of turmoil produce blatant evidence of fraud (which my SEC gets to decide means nothing, and destroys).

It’s win-win, #OWS style.

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