Forensic Accounting
Shawn Carney & John Davitt
Respondent: TBD
December 9, 2024
I've long been fascinated by forensic accounting. A deep dive into the often arcane world of public and private sector debits and credits can be rewarding.
A few examples:
1. The Federal Reserve in 2022 amidst their substantial rate hike policy:
“If the Fed runs sustained losses, it won’t have to turn to Congress, hat in hand. Instead, it will simply create an IOU on its balance sheet called a deferred asset.“
*** Bond losses occur as rates rise.
https://www.wsj.com/articles/higher-interest-rates-fuel-losses-at-the-federal-reserve-11667208602
https://www.forbes.com/advisor/investing/fed-funds-rate-history/
2. "The facility allows banks to exchange assets such as U.S. Treasuries for cash at their full-face amount, regardless of the current market value."
https://www.brookings.edu/articles/what-did-the-fed-do-after-silicon-valley-bank-and-signature-bank-failed/
3. Why do we have so many 6000lb+ SUVs on our roads?
Shawn Carney and John Davitt plan to dive into these topics and more.
Shawn: https://www.linkedin.com/in/shawn-carney-213b4416
John: https://www.linkedin.com/in/john-davitt-cpa-mst-652a8321