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Cash Versus Accrual Accounting for Law Firms
The Legal Intelligencer
February 8, 2011

Relatively early in a law firm’s existence, a decision is required concerning whether to report financial activities to the Internal Revenue Service on a "cash" or "accrual" accounting basis. Relatively early in a law firm’s existence, a decision is required concerning whether to report financial activities to the Internal Revenue Service on a "cash" or "accrual" accounting basis. Full Text


A Bank Counsel’s 40-Year Retrospective
The Legal Intelligencer
February 8, 2011

I started representing banks in 1968. Back then, our three-lawyer general practice firm in Hempstead, N.Y., was general counsel to a 30-branch community bank, handling 100 percent of the bank’s legal work, and still able to carry on a general practice as well. Full Text


Will Your Company Blow It?
The Legal Intelligencer
February 8, 2011

Laws that protect whistleblowers from retaliation have played a major role in exposing fraud and wrongdoing at accounting firms, financial institutions and banks in recent decades, from Swiss bank UBS to the former accounting behemoth, Arthur Andersen. And many of the employees — and their lawyers — who have reported the wrongdoing have reaped millions of dollars in "bounty" for their complaints. Full Text


Foreclosure Rescue Transactions
The Legal Intelligencer
February 8, 2011

In a disconcerting trend for commercial lenders, consumers are naming lenders that financed "mortgage foreclosure rescue" companies as defendants in litigation over failed foreclosure rescue attempts. Subsequently, courts are using equitable concepts with increasing frequency to define consumers as "implied borrowers" in order to amend and even rescind mortgages securing commercial loans. Full Text


Debit Interchange Fees and Routing Proposal Draws Comments, Concerns
The Legal Intelligencer
February 8, 2011

In December, the Board of Governors of the Federal Reserve System published a notice of proposed rulemaking regarding debit interchange fees and routing requirements, as a first step in fulfilling its obligations to prescribe regulations related to Section 1075 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Public commentary regarding this proposal may be submitted to the board on or before Feb. 22, 2011. Full Text



FDIC Professional Liability Group Set to Pursue Audit Firms

The Legal Intelligencer
February 8, 2011

The past three years have seen a plague of bank failures tied to the collapse of the real estate market and related securities markets: 25 banks went under in 2008, 140 in 2009 and 157 in 2010. Compare these numbers with 2007, during which just three banks failed. These are dangerous and uncertain times for banks, and for the professionals – attorneys, accountants, appraisers, brokers — who provide services to them. Full Text