993kgt
building an airplane whee
The sheep are panicking, I’d be more curious to see a graph for SNAXX, don’t know where this data is coming from or if photoshopped
just got an email from my credit union. guess they are tired of answering questions
stevezissou
OT Supporter
I read the SWVXX can limit withdraws at a certain point and charge fees to exit the fund which would have caused more panic
993kgt
building an airplane whee
Yep, they can, which is why some may rationalize, ok I’ll get out early!
It’s all silly behavior , I’ll take the yield
stevezissou
OT Supporter
SWVXX net outflows
looks like it is legit bottom of page "net flows"
Net outflows less than 3% they keep 30% liquid
stevezissou
OT Supporter
- Dec 31, 2008
- 12,169
A money market account seems like a place where new investors or investors who aren't highly confident in not needing those funds short term would start. Considering that it's not surprising that we'd see a lot of outflow there under the current circumstances. People are probably just moving that money into regular savings accounts.
993kgt
building an airplane whee
- Dec 31, 2008
- 12,169
Not really. It's probably the safest place to park cash and still see a bit of growth. But to whoever is withdrawing all of that money it's probably a huge weight off of their shoulders. Some people aren't cut out for this shit.
stevezissou
OT Supporter
stevezissou
OT Supporter
Recent Bank Failures May Indicate Problems with Going Concern Standards, Liquidity Risk Disclosure Rules
Going Concern Not Calibrated Correctly?
Baumann also raised questions about the standards related to going concern—or a company’s ability to stay afloat when obligations are due.
In the 2008 financial crisis, several large financial companies collapsed, two of the nation’s Big Three car makers had to be rescued by the federal government, and the pain was felt throughout the economy. The failures happened with little to no advance warning from the companies involved. Since then, regulators have sought to change the accounting and auditing standards and reporting rules to produce a better warning system.
Fifteen years ago, there was already an auditing standard in place but not an accounting standard.
During the savings and loan crisis in the 1980s, then-Congressman Ron Wyden—he is a senator now—said that accounting firms were not to blame, but they could have blown the whistle earlier.
“So, out of that came the going concern standard whereby auditors then had to evaluate as of the opinion date, was there substantial doubt about the ability of a company to continue as a going concern,” Baumann explained. “And that was supposed to say ‘step back, evaluate liquidity, evaluate the business model, evaluate all kinds of things. Is there a substantial doubt about their ability [to stay afloat.] When a company goes out of business 14 days after an opinion? Well, that’s going to call into question.”
Section 10A of the Securities Exchange Act of 1934 and PCAOB Auditing Standard 2415, Consideration of an Entity’s Ability to Continue as a Going Concern, require auditors to assess a public company’s prospects for staying in business. The evaluations are based on whether there is “substantial doubt” about a company’s ability to continue business operations. If there is, the auditor needs to report it in the auditor’s opinion that is part of a public company’s regulatory filing.
While the PCAOB has been debating how to change the going concern standards since the 2008 financial crisis, the Financial Accounting Standards Board (FASB) came up with its own going concern standard in 2014, which some say were inadequate. The U.S. GAAP requires management to alert investors if they have “substantial doubt” about the company’s survival. The FASB defines substantial doubt using a threshold of “probable” that a company will not be able to pay debts as they come due during the next 12 months.
The difference between the audit standard and the FASB’s guidance prompted the PCAOB to release Staff Audit Practice Alert No. 13, Matters Related to the Auditor’s Consideration of a Company’s Ability to Continue as a Going Concern, to emphasize that the current audit standard remains in effect.
The auditor’s evaluation continues to be qualitative and does not necessarily have to rise to the level of the “probable” threshold that the FASB set. The accounting standard-setter “liberalized” the threshold with that decision, Baumann said.
Because management and auditors have different going concern thresholds, the PCAOB staff has been examining financial statements filed with the SEC to look at both the management’s disclosures and the auditor’s going concern opinions. For 2016 financials, for example, the staff found that in 13 percent of cases, auditors reported substantial doubt while management did not make the disclosures.
“So, there’s still this incredible inconsistency. The auditing standard and the accounting standard are not at the same level,” Baumann said.
Recent Bank Failures May Indicate Problems with Going Concern Standards, Liquidity Risk Disclosure Rules
By now almost everyone knows that Silicon Valley Bank (SVB), which largely lent to tech companies, failed almost overnight on …
tax.thomsonreuters.com
taqman15
Well-Known Member
stevezissou
OT Supporter
ALWAYS A BULL MARKET SOMEWHERE............FRC still in a nose dive down 34%
META was looking solid PM but that dropped off
Some guy on tv keeps saying
taqman15
Well-Known Member
Menger
OT Supporter
- Nov 23, 2011
- 26,459
stevezissou
OT Supporter
Menger
OT Supporter
- Nov 23, 2011
- 26,459
stevezissou
OT Supporter
Bond ratings, stock upgrades, downgrades, buy, sell ratings, all opinions.......
stevezissou
OT Supporter
taqman15
Well-Known Member
MiseryIndex
open your eyes child, your sea is changing.
