BE Notes 6
Which of the following responsibilities was granted to the Consumer Financial Protection Bureau (CFPB)?
Authority to examine and enforce regulations for banks and credit unions with assets over $10 billion
According to the Federal Sentencing Guidelines for Organizations, businesses cannot be held liable for the criminal acts of their employees and agents.
False
The Dodd-Frank Wall Street Reform and Consumer Protection Act Legislation was established to expand the foreign trade sector.
False
The Securities and Exchange Commission can enforce criminal penalties of up to $2 million per violation of the Foreign Corrupt Practices Act for corporations and other business entities.
False
The authority of the Consumer Financial Protection Bureau does not extend to examining and enforcing regulations for banks and credit unions if their assets exceed $10 billion.
False
The original Volcker rule sought to allow trading of all derivatives without discrimination.
False
Title VIII of the Sarbanes-Oxley Act imposes fines on employees for lying to other employees regarding company benefits and pay.
False
Under no circumstances can the culpability score be increased or decreased.
False
Which of the following is true of the penalties under the Foreign Corrupt Practices Act?
Officers, directors, stockholders, employees, and agents are subject to a fine of up to $250,000 per violation and imprisonment for up to five years.
Which of the following is a routine governmental action?
Providing police protection for the transit of goods across a country
Which of the following is true of facilitation payments under the Foreign Corrupt Practices Act (FCPA)?
The FCPA finds them acceptable if they expedite a routine governmental action.
Which of the following key U.S. legislations is an attempt to discourage, if not prevent, illegal conduct within organizations?
The U.S. Federal Sentencing Guidelines for Organizations
In September and October 2008, financial markets around the world suffered a severe crash as a consequence of aggressive lending to subprime borrowers in a deregulated environment.
True
The Federal Sentencing Guidelines for Organizations table factors in both the nature of the crime and the amount of the loss suffered by the victim.
True
The Foreign Corrupt Practices Act focuses on disclosure, which requires corporations to fully reveal any and all transactions conducted with foreign officials and politicians, in line with the Securities and Exchange Commission provisions.
True
The Volcker rule proposed that there should be a key restriction in the legislation to limit the ability of banks to trade on their own accounts.
True
The creation of the Public Company Accounting Oversight Board (PCAOB) as an independent oversight body was an attempt to reestablish the perceived independence of auditing companies that faced serious questioning after several corporate scandals.
True
Under the Foreign Corrupt Practices Act, payments to foreign officials made in connection with the promotion or demonstration of company products or services are legal.
True
Which of the following is a difference between grease payments and bribes under the Foreign Corrupt Practices Act?
Unlike grease payments, bribes induce foreign officials to act in violation of their lawful duty.
In September and October 2008, financial markets around the world suffered a severe crash as:
there was aggressive lending to subprime borrowers in a deregulated environment.
