US energy companies pressured on accounting, rethink European interests

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In a further sign of Enron’s impact on US accounting procedures, energy company Reliant Resources says it has discovered errors in its financial accounting that will mean its 2001 earnings are boosted by $100million–$130 million.

Reliant says it will restate its second- and third-quarter 2001 earnings after an internal review found that a number of transactions initially marked down as cashflow hedges failed to meet financial accounting standards hedging criteria.

The transactions will be

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Credit risk & modelling – Special report 2021

This Risk special report provides an insight on the challenges facing banks in measuring and mitigating credit risk in the current environment, and the strategies they are deploying to adapt to a more stringent regulatory approach.

The wild world of credit models

The Covid-19 pandemic has induced a kind of schizophrenia in loan-loss models. When the pandemic hit, banks overprovisioned for credit losses on the assumption that the economy would head south. But when government stimulus packages put wads of cash in…

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