Salomon pledges action as new losses emerge
Tuesday 28 February 1995
The company blamed a computer error for failure to properly account for the deal.
It also warned that heads might roll and that the position of its auditors would be reviewed.
Salomon revised its fourth-quarter 1994 loss to $157m from a loss of $122m.
Losses for the year are now $399m, against the previously stated $364m.
The restatement is due to an extra $35m tax charge on the yen deal, which the company thought it had accounted for in 1991.
The company said the miscalculations were because a computer did not accurately distinguish between interest income and principal gains and losses upon the redemption of a number of non-dollar securities, principally Mexican Tesobonos and Cetes.
Salomon said that the mistake would have no serious impact on finances, but an investigation was under way and those responsible would be dealt with.
Salomon's chief executive, Robert Denham, said: "Nothing is more important to this company than an absolute insistence on the highest possible standards of control and of accuracy in reporting.
"We will therefore accelerate the implementation of a variety of steps to strengthen our financial reporting and control procedures.
"We are also making appropriate changes in financial division and operations personnel. Finally, our external auditors have stated to us that these items were not uncovered in prior year audits.
"Accordingly, the board will look with particular care this year at the designation of outside auditors."
It is understood that Arthur Andersen is the company's main auditor.
- 1 Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
- 2 Disney heiress Abigail disowns her share of family profits in West Bank company
- 3 Israel's propaganda machine is finally starting to misfire
- 4 Zayn Malik on Israel-Gaza: One Direction singer bombarded with Twitter death threats after posting #FreePalestine
- 5 'Hello mum, this is going to be hard for you to read ...'
Russell Brand accuses FOX News anchor Sean Hannity of terrorism after aggressive Israel-Gaza debate
Sally Farmiloe dead: Howards' Way actress, and former mistress of Jeffrey Archer, dies aged 60
Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
Disney heiress Abigail disowns her share of family profits in West Bank company
Australian model Robyn Lawley stages naked protest against huge coal mine seven times the size of Sydney Harbour
The secret report that helps Israel hide facts
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
A day in the life of Vladimir Putin: The dictator in his labyrinth
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Boozy, ignorant, intolerant, but very polite – Britain as others see us
- < Previous
- Next >
iJobs Money & Business
£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...
£450 - £650 per day + competitive: Orgtel: My client, a leading bank, is curre...
£350 - £400 per day + competitive: Orgtel: Senior Analyst, ALM Data, Halifax, ...
£500 - £600 per day: Orgtel: Java developer - Banking - London - Up to £600/d...