Loss underreporting and the auditing role of bank exams

Using a unique set of banking data containing both originally reported and subsequently revised financial variables, we study the incidence of adverse revisions to accounting statements. As might be expected, our findings indicate banks are more likely to underreport financial losses when their financial performance is substandard. In addition, we provide evidence that supervisory exams have an important role in uncovering financial problems and ensuring bank accounting statements reflect them. Specifically, our estimations point to a significant auditing effect, through which exams can lead to a restatement of financial results to reflect a greater degree of financial difficulty than originally reported. Interestingly, this auditing role of exams is evident not only for institutions previously identified as supervisory concerns, but also at highly rated banks, where financial problems are only just emerging. Because a banking downturn would increase not only the number of problem institutions requiring additional supervisory attention, but also the incidence of loss underreporting at highly rated banks, our findings stress the value of efforts to maintain or bolster the supervisory system's capacity to expand exam activity quickly and substantially.Banks and banking - Accounting

Crédito y actividad económica en México

Los años ochenta han sido calificados como “la década perdida” para México, como un reflejo de las altas tasas de inflación y el bajo crecimiento económico que caracterizó la economía del país durante dicho periodo. Gran parte de las dolencias económicas y financieras que asolaron a México fueron precipitadas por la crisis de la deuda de 1982, provocada a su vez por los efectos combinados de un gasto gubernamental excesivo, la caída de los precios del petróleo, el aumento de las tasas de interés mundiales y la fuga de capitales. En las secuelas de la crisis de la deuda de 1982, las necesidades crediticias del gobierno fueron enormes, próximas a una sexta parte de la producción de la economía en 1986 y 1987. Puesto que el acceso de México a los mercados de crédito internacionales era limitado, la mayor parte de estas necesidades tuvieron que satisfacerse internamente.

Chiral carbene–borane adducts: precursors for borenium catalysts for asymmetric FLP hydrogenations

The carbene derived from (1R,3S)-camphoric acid was used to prepare the borane adduct with Piers’ borane 7. Subsequent hydride abstraction gave the borenium cation 8. Adducts with 9-BBN and the corresponding (1R,3S)-camphoric acid-derived carbene bearing increasingly sterically demanding N-substituents (R = Me 9, Et 10, i-Pr 11) and the corresponding borenium cations 12–14 were also prepared. These cations were not active as catalysts in hydrogenation, although 9–11 were shown to undergo carbene ring expansion reactions at 50 °C to give species 15–17. The IBOX-carbene precursors 18 and 19 derived from amino alcohols (S)-valinol and (S)-tert-leucinol (R = i-Pr, t-Bu) were used to prepare borane adducts 20–23. Reaction of the carbenes 1,3-dimethylimidazol-2-ylidene (IMe), 1,3-di-iso-propylimidazol-2-ylidene (IPr) 1-benzyl-3-methylimidazol-2-ylidene (IBnMe), 1-methyl-3-phenylimidazol-2-ylidene (IPhMe) and 1-tert-butyl-3-methylimidazol-2-ylidene (ItBuMe) with diisopinocampheylborane (Ipc2BH) gave chiral adducts: (IMe)(Ipc2BH) 24, (IPr)(Ipc2BH) 25, (IBnMe)(Ipc2BH) 26, (IPhMe)(Ipc2BH) 27, and (ItBuMe)(Ipc2BH) 28. Triazolylidene-type adducts including the (10)-phenyl-9-borabicyclo [3.3.2]decane adduct of 1,3,4-triphenyl-1H-1,2,3-triazolium, rac-29 and the 9-BBN derivative of (S)-2-amino-2′-methoxy-1,1′-binaphthalene-1,2,3-triazolium 34a/b were also prepared. In catalytic studies of these systems, while several species were competent catalysts for imine reduction, in general, low enantioselectivities, ranging from 1–20% ee, were obtained. The implications for chiral borenium cation catalyst design are considered

Vascular endothelial growth factor restores delayed tumor progression in tumors depleted of macrophages

Genetic depletion of macrophages in Polyoma Middle T oncoprotein (PyMT)‐induced mammary tumors in mice delayed the angiogenic switch and the progression to malignancy. To determine whether vascular endothelial growth factor A (VEGF‐A) produced by tumor‐associated macrophages regulated the onset of the angiogenic switch, a genetic approach was used to restore expression of VEGF‐A into tumors at the benign stages. This stimulated formation of a high‐density vessel network and in macrophage‐depleted mice, was followed by accelerated tumor progression. The expression of VEGF‐A led to a massive infiltration into the tumor of leukocytes that were mostly macrophages. This study suggests that macrophage‐produced VEGF regulates malignant progression through stimulating tumor angiogenesis, leukocytic infiltration and tumor cell invasion

End-to-End Modeling of the TDM Readout System for CMB-S4

The CMB-S4 experiment is developing next-generation ground-based microwave telescopes to observe the Cosmic Microwave Background with unprecedented sensitivity. This will require an order of magnitude increase in the 100 mK detector count, which in turn increases the demands on the readout system. The CMB-S4 readout will use time division multiplexing (TDM), taking advantage of faster switches and amplifiers in order to achieve an increased multiplexing factor. To facilitate the design of the new readout system, we have developed a model that predicts the bandwidth and noise performance of this circuity and its interconnections. This is then used to set requirements on individual components in order to meet the performance necessary for the full system. We present an overview of this model and compare the model results to the performance of both legacy and prototype readout hardware.Comment: This manuscript was submitted to the Journal of Low Temperature Physics as part of the special issue "LTD20", supporting the conference contribution RP-00

System size and centrality dependence of the balance function in A+A collisions at sqrt[sNN]=17.2 GeV

Electric charge correlations were studied for p+p, C+C, Si+Si, and centrality selected Pb+Pb collisions at sqrt[sNN]=17.2 GeV with the NA49 large acceptance detector at the CERN SPS. In particular, long-range pseudorapidity correlations of oppositely charged particles were measured using the balance function method. The width of the balance function decreases with increasing system size and centrality of the reactions. This decrease could be related to an increasing delay of hadronization in central Pb+Pb collisions

System size and centrality dependence of the balance function in A + A collisions at sqrt s NN = 17.2 GeV

Electric charge correlations were studied for p+p, C+C, Si+Si and centrality selected Pb+Pb collisions at sqrt s_NN = 17.2$ GeV with the NA49 large acceptance detector at the CERN-SPS. In particular, long range pseudo-rapidity correlations of oppositely charged particles were measured using the Balance Function method. The width of the Balance Function decreases with increasing system size and centrality of the reactions. This decrease could be related to an increasing delay of hadronization in central Pb+Pb collisions

LSST: from Science Drivers to Reference Design and Anticipated Data Products

(Abridged) We describe here the most ambitious survey currently planned in the optical, the Large Synoptic Survey Telescope (LSST). A vast array of science will be enabled by a single wide-deep-fast sky survey, and LSST will have unique survey capability in the faint time domain. The LSST design is driven by four main science themes: probing dark energy and dark matter, taking an inventory of the Solar System, exploring the transient optical sky, and mapping the Milky Way. LSST will be a wide-field ground-based system sited at Cerro Pach\'{o}n in northern Chile. The telescope will have an 8.4 m (6.5 m effective) primary mirror, a 9.6 deg$^2$ field of view, and a 3.2 Gigapixel camera. The standard observing sequence will consist of pairs of 15-second exposures in a given field, with two such visits in each pointing in a given night. With these repeats, the LSST system is capable of imaging about 10,000 square degrees of sky in a single filter in three nights. The typical 5$\sigma$ point-source depth in a single visit in $r$ will be $\sim 24.5$ (AB). The project is in the construction phase and will begin regular survey operations by 2022. The survey area will be contained within 30,000 deg$^2$ with $\delta<+34.5^\circ$, and will be imaged multiple times in six bands, $ugrizy$, covering the wavelength range 320--1050 nm. About 90\% of the observing time will be devoted to a deep-wide-fast survey mode which will uniformly observe a 18,000 deg$^2$ region about 800 times (summed over all six bands) during the anticipated 10 years of operations, and yield a coadded map to $r\sim27.5$. The remaining 10\% of the observing time will be allocated to projects such as a Very Deep and Fast time domain survey. The goal is to make LSST data products, including a relational database of about 32 trillion observations of 40 billion objects, available to the public and scientists around the world.Comment: 57 pages, 32 color figures, version with high-resolution figures available from https://www.lsst.org/overvie

On the Market Discipline of Informationally-Opaque Firms: Evidence from Bank Borrowers in the Federal Funds Market

Using plausibly exogenous variation in demand for federal funds created by daily shocks to reserve balances, we identify the supply curve facing a bank borrower in the interbank market and study how access to overnight credit is affected by changes in public and private measures of borrower creditworthiness. Although there is evidence that lenders respond to adverse changes in public information about credit quality by restricting access to the market in a fashion consistent with market discipline, there is also evidence that borrowers respond to adverse changes in private information about credit quality by increasing leverage so as to offset the future impact on earnings. While the responsiveness of investors to public information is comforting, we document evidence that suggests that banks are able to manage the real information content of these disclosures. In particular, public measures of loan portfolio performance have information about future loan charge-offs, but only in quarters when the bank is examined by supervisors. However, the loan supply curve is not any more sensitive to public disclosures about nonperforming loans in an exam quarter, suggesting that investors are unaware of this information management