A review board finds that the former CFO could not have "reasonably believed" that Cardinal Bancshares misled investors.
Stephen Taub, CFO.com | US
June 5, 2007
There are situations when justice cries out so loudly that all the publi company CFO analysis in the world is meaningless. This is such a case. Regardless to those of us who can "Monday morning quarterback" this man's actions, he certainly acted to blow the whistle on what he believed to be improper conduct. Whether, the morning after, with 20/20 hindsight see it as that is irrelevant. He took a stand relying on the protection of the law. The law has failed here because it works through men. Every man sees facts from his own peculiar point of reference and, it may be influenced by any number of factors, some legitimate and some not. The patentness of propriety here seems to suggest the "not."
Posted by Jim Quinlan | June 06, 2007 01:50 pm
There is no "well known facts" or "bias" or "corruption" which has been proven or even alleged, as proffered in the previous postings. Since I have followed this case and have commented on previous articles, it is important to note that the SEC, the PCAOB, or the DOJ have not seen fit to bring so much as an inquiry, never mind an action, against Cardinal, its directors or public accountants. Notably, the hoard of class action attorneys, who will file suits at the drop of a hat, have ignored this case as well. Having been a CFO for a number of public companies, Welsh's charges about the accounting firm not communicating enough, too many people making journal entries, etc are all Welsh's responsibilities, which by his own admissions, he failed at miserably. He should have been fired since he obviously was not capable of performing his responsibilities. Save your politically motivated comments for the ballot box.
Posted by Gary Cademartori | June 06, 2007 10:23 am
It has been well known fact that Dept. of Labor Review Board is for sale to corporate gangs. In fact, Why doesn't SEC and Dept. of Justice investigate members of this board to determine their ethics and law abidience. Answer is simple, Gonzalez as Attorney General is corrupt and without morale. This is the legacy of Bush Administration-condoning corruption at all levels. Accounting is not a fiction or a story. Absence of Finance and Accounting principals will cause eventual collapse of our financial system. Supreme Court should review this case without bias.
Posted by Johnny Nelson | June 06, 2007 06:56 am
Anytime loss/recovery experience is misrepresented, it is necessarily material. Lending policies, practices, and procedures are absolutely fundamental to each and every banking enterprise. Take a penny or take a million, it makes no difference. The principle has been violated. To close the loop, this is why, I believe, principle-based accounting can be effective in the longer run. Directors need only ask what items were exceptions to stated principles; forget the materiality issue. Accounting is not to be fiction.
Posted by Robert Boyd | June 05, 2007 07:56 pm
Hopefully the judge at the next level will not be bought off by Cardinal, as it appears this one had to be.
Posted by Jim Quinlan | June 05, 2007 07:43 pm© CFO Publishing Corporation 2009. All rights reserved.