Bank Accounting & Finance articles from December 2006

Bank Accounting & Finance archives from December 2006

Competition, pricing and economic capital: improve understanding of profitability to price more competitively.
December 1, 2006... Speaking at the Global Association of Risk Professionals' Basel II & Banking Regulation Forum in May 2006, Governor Susan Schmidt Bies reaffirmed the Federal Reserve's commitment to Basel II. On March 30, 2006, the Federal Reserve Board...

Tying management information to the front line: how profitability information can simplify loan pricing and align incentives with strategy.
December 1, 2006... Abraham Lincoln once said, "If I had eight hours to chop down a tree, I'd spend six sharpening my ax." The most important function of senior management is the development of strategy. Execution of strategy is a very close second. Management...

Bank mergers and valuation: an empirical study: a survey of the largest U.S. banks finds that geographic diversification is a driving force behind mergers.(Survey)
December 1, 2006... The passage of key legislation in the 1990s has had a major impact on the merger and acquisition landscape in banking. The 1994 Riegle-Neal Act fully opened the way to interstate acquisitions, and the 1999 Graham-Leach Bliley Act expanded the...

What happens to undercapitalized credit unions? Most credit unions return quickly to healthy levels of capital.(National Credit Union Administration)
December 1, 2006... The Credit Union Membership Access Act of 1998 (CUMAA) required the National Credit Union Administration (NCUA) to implement a net-worth classification system and risk-based net-worth measurements intended to parallel one used by banking...

Measuring market reaction to gains trading by banks: pricing of these realized gains did not decrease with additional disclosure.(Financial Accounting Standards Board)
December 1, 2006... How have investors valued gains and losses arising from gains trading, and how has the valuation changed as a result of changes in disclosure? How investors value realized and unrealized gains and losses on banks' investment securities is...

Staff accounting bulletin addresses the process of quantifying financial statement misstatements: staff accounting bulletin would establish standard procedures for evaluating the materiality of prior years' errors.(SEC Update)
December 1, 2006... The Securities and Exchange Commission's (SEC's) staff at the Office of the Chief Accountant and Divisions of Corporation Finance and Investment Management recently issued Staff Accounting Bulletin No. 108 (SAB-108) to provide interpretive...

Building an antifraud framework: culture, risk assessment and oversight together can combat fraud.(Risk Management)
December 1, 2006... Recent years have seen the release of several new regulations and auditing standards affecting how financial institutions must approach fraud. As external auditors and regulatory agencies first grappled with the various requirements, they...