Quote:
Originally Posted by Undertoad
Point to ONE. Just ONE.
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Where does the FDIC legislation make Enron accounting illegal? It does not. The 1991 legislation addresses principles from Basel 1 - an international standard for how much equity a bank must hold. Equity in banking – not public corporation accounting standards.
BTW, the US is the only nation that does not comply to the International standards for accounting? The US standards are different from the rest of the world.
Only American banks required to meet Basel 2 are those who operate internationally. And those are the banks that have been so stable during this meltdown. Where did George Jr implement Basel 2? He did not even do that.
Enron style accounting remains so common as to even be evident in AIG just before its collapse. The detail cited in numerous other posts. Yes, the auditor had doubts. But today's deregulated accounting and near zero SEC enforcement made it difficult even for the internal auditor or PriceWaterhouse to see that AIG was collapsing.
Fortunately we have the accounting that a business school graduate - George Jr - wants. So what happened to all that cash in the Highway Trust Fund that the spread sheets say is still there? Sabanes-Oxley does not even require the president to sign off on the accounting.
UT tells us that the new American deregulated accounting standards are good? UT - show me where Enron style accounting practices were made illegal. You cannot. AIG was fully involved in hiding losses even just before the collapse. So what are these 'surprise' AIG losses that have already consumed $120billion? UT tells us everyone knew about these losses? Hardly. Due to today's deregulated accounting, nobody knows how much more AIG will lose.