Conrad Black vows to regain business empire

From the Globe and Mail:

Conrad Black has vowed in a court filing to regain control of what remains of his business empire, but he’s also worried there might not be much left.

This struck me as a bit strange. I have to admit my experience with court filings isn’t extensive, but I just assumed they were pretty formal, standard documents. I didn’t think they could be used for vengeful, rhetorical purposes by the filer, but somehow Conrad made it happen. I wish they’d give the direct quote from the filings where he vows to get it all back.

But I digress. What really interested me once I read further:

Last week, Lord Black filed a motion in an Ontario court asking a judge to compel Ravelston‘s receiver, RSM Richter Inc., to explain how it is protecting the firm’s assets. Lord Black alleged Richter and new managers at Hollinger International and Hollinger Inc. have spent $250-million over the past three years on professional fees. He also alleged the firms have lacked focus and devoted their time to “examining the past to see if there are litigation ‘assets’ that can be pursued.”

Basically, Hollinger is going after Black for misappropriating the company’s assets, and by doing so, Black believes they are paying too many legal and consulting fees. The litigation assets, I would imagine, are Black’s thievings, and the lawyers have probably been hired to figure out how Hollinger can get some of it back! Oh what a tangled web.

Canadian bank “shakes” Enron related audit rules

From the (Toronto) Star:

Banking authorities in Canada and the United States have lifted an enforcement action that they imposed on the Canadian Imperial Bank of Commerce three years ago over its involvement with Enron Corp.

The action put restrictions on CIBC and required it – for the past three years – to pay for an independent auditor to help authorities on both sides of the border monitor how well it was complying with those rules.

The rules required the bank to create a financial transaction oversight committee, to change its employee training program, and to stop carrying out “certain structured finance transactions,” among other things.

I’m not sure how the banks are responsible for the Enron debacle, but I guess when you’ve lost $40-billion in market value someone’s gotta pay. And I’m sure the banks don’t really need me to defend them, as they once again reported record profits this year and continue to charge me a buck and a half every time I use one of the other banks’ ATMs.

And what’s with the use of the word ‘shakes’ in the headline? Was this billion dollar lawsuit something they just had to get through like a cold or something?

The article also notes two other Canadian banks are still involved in the class action lawsuit brought on behalf of former Enron investors.

Accounting has returned to Nashville

It’s a little strange but within a week of an announcement by BDO Seidman that they were returning to Nashville, Tennessee with an office and aim to focus on the health care industry, PricewaterhouseCoopers makes a similar announcement about said city and industry.

What I’m wondering is why both of those firms are just establishing (or in the case of PwC, re-establishing) offices there now. With a population pushing 1.5 million in the metro area, who was getting all the work? More regional firms I’d bet.

Quit today, get hired back tomorrow

A recent story by the AP highlighted an interesting byproduct of the CA shortage – employees who leave their job at accounting firms are being actively recruited back to rejoin their former firm. Seems employers have realized that more often than not in the accounting business employees leave to explore different career options but leave the door open to returning to public practice.

Audit senior manager Danica Dilligard left Ernst & Young LLP in 2003 after six years with the company. E&Y’s courtship began almost immediately. The E&Y partners she’d worked with called, saying, “Just wanted to make sure you’re happy. There’s always a home for you here.” She was invited to E&Y golf outings, where she played in a foursome with the partners. She was included in professional certification courses and welcomed at networking events.

Granted this is a senior manager we’re talking about, but I have seen it trickling down to just about every level, down to the lowliest junior. It’s smart though.