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Posted 07/20/2010 By Matt Stichnoth

NEW BANKSTOCKS.COM FAN PROVIDES ADDED COMMENTARY ON JPM 2Q RESULTS.

In the comments section, Jim Quinn responds to my assertion that, contrary to Quinn's charge, Jamie Dimon did not shake and bake JPMorgan’s second-quarter earnings results:

Matt old boy You actually believe the crap you are writing? I'm a CPA and worked in the corporate world for 16 years you tool. I understand GAAP. I also understand how corporate management operates. Dumb ass auditors will sign off on anything Dimon shoves in front of their face. He pays the fees and they bend over. You clearly don't understand how the real world operates. If you recall, Enron's books looked spectacular until the company went bankrupt. You sound like a common bank analyst shill to me.

And here I thought Tom was the shill. . . . . Quinn’s argument, such as it is, seems to be that since Enron’s auditors allowed the company to get away with murder ten years ago, GAAP must be meaningless and all company managements everywhere must routinely make up their numbers as they go along. But Enron was an anomaly! That’s why it was in all the papers! Note that Quinn offers zero evidence of accounting malfeasance on JPMorgan’s part, other than his own mistaken understanding of reserve accounting. Since the Enron blowup, meanwhile, accountants have been sent to jail, Arthur Andersen has imploded, and laws like Sarbanes-Oxley have been enacted. If outside auditors ever routinely acted as management lapdogs (which they did not) they sure don't anymore. (And auditors aren't the only ones looking over a bank's management's shoulder; regulators are, as well.) Quinn is simply wrong in both his understanding of accounting and his understanding of how it is applied. . . . P.S. Whatever you do, do not trust the content of audits conducted by Jim Quinn, CPA. . . .


11:05 AM  
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