Thursday April 13, 2017

Scrambling to recover from his re accomodate comment, now the CEO of United promises to never forcibly remove a passenger again.

Well what if United needed to remove a passenger for a genuine reason?

This is a good example of how bad policy leads to more bad policy and mistake after mistake.

Recovering from such a PR disaster is quite difficult.  The print paper had a graph showing United bumps more passengers than other airlines. So one has a greater chance of NOT getting

to the destination if United needs the seats for its own employees. Empty seats do not make money but bad ethical decisions don't make for more paying passengers.

Wed April 12 2017

United just keeps on stepping in it

Wednesday April 12, 2017

Going Viral on You Tube for all the Wrong Reasons

United Airlines literally dragged a paying passenger which was videoed by another passenger. The passenger is being forcibly dragged off the plane by Chicago Airport Workers no less. Worse the reason was to fly four United employees to another city. Now United is the subject of a series of you tube satires.

UA CEO Oscar Munoz only made things worse by describing this as a 're accomodation.'  In this WSJ column today Holman Jenkins calls for a boycott of UA.

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KPMG fires five partners over leaking information on PCAOB auidt inspections.

Apparently a KPMG employee who had worked at PCAOB previously received word about  which audits the regulator would examine. And this goes all the way up to and including now fired David Middendorf, KPMG's national managing partner  for audit quality and professional practice.

And in the when it rains it pours department, KPMG audits Wells Fargo, and well, where were the auditors as thousands were fired for not meeting quotas as Wells created non requested credit cards and accounts?

And among the Big Four, KPMG had the highest number of deficiencies in audits examined by the PCAOB the last two years. No wonder the national audit manager was seeeking to head 'em off at the pass.'  KPMG responded that the firm has zero tolerance for  such behavior.

We study accounting ethics or rather the need for them in ACCT 5308. How is it that individuals at such high levels can engage in the very behavior the PCAOB was created to eliminate?  They just don't get it. I suppose they will retain their CPA licenses.

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Toshiba admits it may not survive.

Between huge losses at its US nuclear facility and an accounting scandal in  2015, teh firm may

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Jack Young, the driver who hit the church bus, had taken prescription pills and possessed marijuana at the time.

The investigation will include blood samples from the hospital stay of Young as he was too injured at the scene for examination.

Reports grow that he was texting while driving.  The DA will wait for the entire investigation to conclude but not looking good for Jack here.

Tuesday April 11, 2017

The Wells Fargo Board

accused Carrie Tolstedt downplayed problems at the branches and bucking at scrutiny over fraudulent sales practices.

The report  recommended that the bank claw back $47.3 million that she had received in stock options, on top of $19 million it had previously taken away.

To the end, Stumpf was full of compliments for her. In the press release on Tolstedt's retirement last year, at age 56, he called her a "principled" banker and a "dear friend." Wells paid her $9.5 million in 2015, citing her "strong cross-selling ratio" and her work "reinforcing a strong risk culture," according to regulatory documents.

In his grilling before Congress last year before he stepped down in disgrace, Stumpf said he was "deeply sorry" the bank didn't act sooner to stem the misconduct. As for firing Tolstedt, though, he said he never even considered it.

Here is a failure through and through, where was the Board or the Internal Auditors when this was going on?  Did no one notice all the firings for failure to make quotas?  And now she takes the blame for doing what they wanted her to do!