Eugene A. Ludwig Quotes

If you look at the history of the American capital market, there's probably no innovation more important than the idea of generally accepted accountancy principles.

I am a graduate in business management with specialisation in finance, and I love accounts!

It should strengthen investors' confidence. This is done through transparency, high quality financial reports, and a standardized economic market. This is not just for China, but also for the world market as a whole.

Mark-to-market accounting is like crack. Don't do it.

The financial crisis is a stark reminder that transparency and disclosure are essential in today's marketplace.

It is impossible to understand the financial health of big financial institutions and their potential impact on the market. They don't even understand it themselves.

I think the market should reward banks that have been transparent in recognising their problems. I think the tendency of banks to hide the problem assets over a period of three or four years should not be allowed.

Certified Public Accountant

A financial institution has the task of taking risks, and if it's a well run institution - say, Goldman Sachs - it tries to cover the potential losses to itself, but only to itself.

I was, as president and chairman of the board, required by law to verify the veracity of the financial figures, the assets under management, the number of outstanding shares, et cetera.

Enhanced transparency has helped to reinforce the stability of India's financial system.

Proper accounting is like engineering. You need a margin of safety. Thank God we don't design bridges and airplanes the way we do accounting.

Everyone caved, adopted loose [accounting] standards, and created exotic derivatives linked to theoretical models. As a result, all kinds of earnings, blessed by accountants, are not really being earned. When you reach for the money, it melts away. It was never there. It [accounting for derivatives] is just disgusting. It is a sewer, and if I'm right, there will be hell to pay in due course. All of you will have to prepare to deal with a blow-up of derivative books.

Sometimes people start making a change with without making sure the first the first source of income sticks.

When you take smaller gambles, no one particular deal can be big enough to have a material adverse effect on the company.

If you talk to a top accountant about his field of expertise, it's mind-boggling.

A risk-insensitive leverage ratio can be a useful backstop to risk-based capital requirements. But such a ratio can have perverse incentives if it is the binding capital requirement because it treats relatively safe activities, such as central clearing, as equivalent to the most risky activities.

Over time, low rates can put pressure on the business models of financial institutions.

What happens to a private company that comes out with a quarterly report and an annual report? It gives transparency. It talks of basic issues of governance and transactions with related parties.

Do not go out first thing after signing a contract and buy assets that are huge compared to the contract signed. Just because you have money for the first time doesn't mean you have to spend it before you know all the ramifications of buying the assets.

Governance is very important in NBFCs.

One of the risks for anybody in the lending business is that being conservative can harm your competitiveness.

Nobody is going to invest in the Italian banks unless they trust their balance sheets.

I don't know about technology and I don't know about finance and accounting.

A sound banker, alas, is not one who foresees danger and avoids it, but one who, when he is ruined, is ruined in a conventional way along with his fellows, so that no one can really blame him.