Governance & Regulation Archives - Emile Woolf writes

Accounting clarity – or regulatory clutter?

APRIL 2017 – ‘ACCOUNTANCY’ MAGAZINE The impediment of accounting clutter Management accounts have never been subjected to the rigorous straightjacket of regulatory standards because people running businesses base their internal accounting systems on utility, or relevance to their needs. In an ideal world, users of published financial statements would be consulted on utility before involving […]

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Useless Sanctions against Banks

‘ACCOUNTANCY’ – JANUARY 2017 MONETARY SANCTIONS? USELESS ON THEIR OWN Unfortunately for our profession, the ‘Big 4’ label may equally be taken to refer to HSBC, RBS, Lloyds and Barclays, which between them have incurred an eye-watering £50 billion in fines and lawsuits since the financial crisis began ten years ago. Their misdemeanours relate mainly […]

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Boardroom mega bucks – ludicrous pay deals

Explaining boardroom mega-bucks The basic pay of most employees is governed by industrial and professional norms, and is relatively stable over time when so-called “inflation” adjustments are factored in. Almost unbelievably, today’s average hourly wage has the same buying power as it did 45 years ago! By contrast, executive remuneration in the largest companies is […]

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Legitimising corrupt practices

February 2017 “ACCOUNTANCY” Legitimising corrupt practices In last month’s column I commented on the huge fines levied on financial institutions guilty of violating securities laws, noting that natural justice would be better served if these vast penalties were applied to compensate victims, rather than enriching culprits’ lawyers – while leaving the transgressors’ obscene levels of […]

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Economic Perspectives 9 – Regulatory extortion and legitimising corruption

News media gloat over the eye-watering levels of retribution (in the form of fines and penalties) finally being meted out to aberrant banks found guilty of having violated securities laws leading up to the last financial crash. I find it astonishing, firstly, that it has taken close to 10 years to identify, formulate and punish […]

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Economic Perspectives – 5 – The true interest rate story

ECONOMIC PERSPECTIVES 5 “Death by 1,000 cuts” This was the name given to the ancient Chinese method of torture and execution. It survives today as the role model for central bankers whose insidious cuts – in interest rates – are relentlessly destroying the life-blood of savings throughout the world. Collateral damage caused by this folly […]

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Economic Perspectives – 7 -How the US Dollar became the world’s reserve currency

Economic Perspectives -7 The US Dollar is the world’s “reserve currency” for international trade settlements – how did it happen, and will it last? [I am indebted to Professor Patrick Barron for the insights expressed in his March 2016 ‘podcast’, which inspired this chapter of ‘Economic Perspectives’] 1 – America collects gold, the world’s first […]

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