The Great Debate

from David Cay Johnston:

A history of audit failures

By David Cay Johnston
November 11, 2011
The author is a Reuters columnist. The opinions expressed are his own.

The admission by Olympus Corp that it falsified financial reports for more than a decade should not shock anyone. The shock is that, for years, auditors failed to detect such massive fraud.

Everyone’s housing market profits were fictitious

By Maureen Tkacik
October 27, 2011

By Maureen Tkacik
The opinions expressed are her own.

Also read part one of this series, How Ed DeMarco finally cried fraud.

A big clue something had become dysfunctional at Fannie Mae and Freddie Mac came in the first week of 2011, when the government mortgage market makers announced the terms of a settlement agreement they’d reached with Bank of America, and were immediately pilloried for extending the bank another “backdoor bailout” by the likes of Maxine Waters and the American Enterprise Institute.