The Group of Thirty Report on Financial Reform

The Group of Thirty released their latest report: Financial Reform – A Framework for Financial Stability.(.pdf) The report focuses on flaws in the global financial system and provides recommendations to improve the systems. The report project was led by Paul Volcker, Chairman, and Tommaso Padoa-Schioppa and Arminio Fraga Neto, Vice Chairmen. The rrport does not […]

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The Unexpected Benefits of Sarbanes Oxley

The April 2006 issue of the Harvard Business Review has an article by Stephen Wagner and Lee Dittmar on The Unexpected Benefits of Sarbanes Oxley. Although the article is somewhat dated when it talks about the second year under Sarbanes Oxley, it foretells some of the current thoughts in compliance. Compliance is good for business. Two […]

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Auditing Standard No. 5 for Smaller Companies

PCAOB released Staff Views for applying the provisions of PCAOB Standard No. 5 for audits of smaller, less complex public companies (.pdf) on January 23, 2009. Standard No. 5 is focused on assessing the effectiveness of internal controls over financial reporting. This Staff View of PCAOB Standard No. 5 discusses how to scale an audit […]

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Madoff in Limerick Form

Freakonomics ran a contest for the best definition for Bernie Madoff in limerick form. They had special guest judge Chris J. Strolin, founder and editor-in-chief of The Omnificent English Dictionary In Limerick Form announce The Winning Definition of “Madoff,” in Limerick Form. The best of the best was #98 by sqlman: His investments’ ascent: like […]

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Book Review: The Black Swan

I just finished reading The Black Swan by Nassim Nicholas Taleb. The title of the book comes from the observations of Europeans that all swans are white. Much to their surprise, they came to Australia and found their first black swan. The book starts with this story to illustrate the “limitations to our learning from […]

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Dilbert on Business Ethics and Online Reviews

Published February 1, 2009

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When Markets Turn

The Economist ran a special report on the future of finance last week. One item caught my eye – When Markets Turn: A Parable of How Modern Finance Can Go Wrong. The story looks back at the collapse of the Long-Term Capital Management in 1998. The article puts some of the lessons of that funds […]

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Hedge Fund Transparency Act of 2009

Senators Chuck Grassley and Carl Levin introduced the Hedge Fund Transparency Act (S.344). Instead of amending the Investment Advisers Act of 1940 (as Senator Grassley tried with S.1402 in the 110th Congress), this bill would amend the Investment Company Act of 1940. The first step is defining a “hedge fund.” (Not an easy task) Rather […]

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First Report of the Walker Guidelines Monitoring Group

The Guidelines Monitoring Group has published its First Report (.pdf) on the UK private equity industry’s conformity with the Walker Guidelines. The Guidelines are intended to have funds enhance their reporting and the reporting by their large portfolio companies. They define a portfolio company as one with a market capitalization (prior to be acquired) was […]

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Recommended Annual Review for Hedge Funds and Other Private Fund Managers

Bingham McCutchen has put together a Recommended Annual Review for Hedge Funds and Other Private Fund Managers. Bingham put together a laundry list of regulations, policies and filings that you should review on at least an annual basis: Compliance Policies and Procedures Form ADV Part 1 and Form ADV Part II Form SH Anti-Fraud Rule […]

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