Archive for December 9th, 2008
SEC Moving Closer to International Financial Reporting Standards (IFRS)
By David Feldman at 9 December, 2008, 7:41 am
SEC Chairman Christopher Cox, though planning to leave before President-elect Obama is sworn in on January 20, is still pretty busy. One of his recent priorities has been moving towards allowing all US public companies to use “international financial reporting standards” (IFRS) if they choose, and possibly to mandate it by as soon as 2014.
One [...]
Bankruptcies to Extend into 2010
By David Feldman at 9 December, 2008, 4:43 am
The aftershocks of the current recession are likely to be felt well into 2010, according to a study released today by Bain & Company. The study finds that bankruptcies of U.S. companies with $100 million or more in assets will approach 100 in 2010. The estimate is based on an analysis of macroeconomic trends including a projected default rate of 7-9% of corporate issuers of speculative debt (rated B or lower) and a $500 billion shift away from consumer spending to consumer savings. Large company bankruptcies currently are tracking to be in the 50-75 range in 2008, which is in line with the Bain CRG Spring 2008 outlook. The study estimates bankruptcies next year to surge into the 95-120 range, an upward forecast from the spring based on the recent economic downward forecasts for the economy.
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