Yesterday in Parliament, I chaired an event with Gordon Kerr, launching his report The Law of Opposites, which is covered in the Guardian today: Banks use accounting loopholes to inflate their profits and bolster staff bonuses, according to a report published on Wednesday that calls for changes to the international […]
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We won’t achieve financial stability under IFRS
I spoke by Skype link to the Local Authority Pension Fund Forum this afternoon on a panel about the International Financial Reporting Standard and its faults. The LAPFF has just published a report which critiques the Standard as a key contributor to the financial crisis. I first met IFRS in […]
Read MorePressing the Chancellor on accounting standards for banks
As The Telegraph in particular has reported, there are serious concerns about the IFRS accounting standard applicable to banks. It may enable and encourage banks to report false profits and fake capital. If my specialist colleagues are right, the banks could be in much worse shape than commonly thought. Via […]
Read MoreBank warns lenders over bad loans – FT.com
As I have been saying about IFRS: The FPC said it was most concerned that banks had not set aside adequate provisions for this potential new crop of troubled loans. “If provisioning is inadequate, banks’ reported profits and levels of capital may provide a misleading picture of their financial health,” […]
Read MoreConservativeHome’s Platform: Steve Baker MP: Accounting has never been so exciting!
Via ConservativeHome’s Platform: Steve Baker MP: Accounting has never been so exciting: There is a growing awareness that one of the main contributors – if not the main contributor – to the severity of the financial crisis was the system of accounting rules under which UK banks continue to operate. […]
Read MoreRoyal Bank of Scotland told by MPs to explain £25bn accounting ‘distortion’ – Telegraph
The Telegraph picks up my Bill on bank accounting: David Davis, the former Tory front bencher, and Steve Baker, the MP for Wycombe, have called for RBS to prove that its accounts are not being distorted by the controversial International Financial Reporting Standards (IFRS). The letter, seen by The Daily […]
Read MoreA Bill to expose banks’ false profits, overstated capital and hidden losses
My Financial Services (Regulation of Derivatives) Bill has now been printed, ready for second reading on 10 June. You can obtain the PDF here and track the Bill’s progress here. The press release, including links to background evidence and press coverage, is here. When I introduced my Bill on 15 March, I […]
Read MoreConservativeHome’s Platform: Steve Baker MP: It’s time to bring casino banking into the light
Last year, I learned how derivatives can be used by banks to manufacture the illusion of profit. Tomorrow, I am introducing a ten-minute rule bill which would bring this casino banking into the light. Read more via ConservativeHome’s Platform: Steve Baker MP: It’s time to bring casino banking into the […]
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