With Change in 'Mark to Market' The Banks Can Now Inflate Their Asset Values.... LINK

[Blackhatjack]

Banks can now say these assets are worth much more than the current market conditions would indicate, and we are going to carry those values at the higher rate on our balance sheets.

So if you have a ton of 'toxic assets' that the Government is committed to buying up, what is to stop those Banks from 'inflating the values' of those toxic assets? Not much in their way of turning 'toxic assets' into huge gains for those seeking to sell them to the Govt.


http://news.yahoo.com/s/nm/20090402/bs_nm/us_marktomarket_fasb_6

[leftstreet]

1. When do we get to inflate the value of our labor?

oh wait...never.

[Blackhatjack]

2. This is a really big deal ... as the rise in the stockmarket today indicates. n/t

[DJ13]

3. I think they changed it because the calls for nationalization were getting louder

The big money folks (with connections to Gethner and Summers) were in a panic that as long as the toxic derivatives were weighing down the bank stocks the calls for nationalization wouldnt go away.

[Blackhatjack]

5. Raise the value and you lower the actual amount of reserves required to back it...

This essentially allows Banks to free up some of the cash reserves that were required before the change in Mark to Market valuation.

Feel better knowing that the very banks which took billions in taxpayer $$ are going to be allowed to operate without adequate reserves?

Sure seems like a re-run of earlier disasterous policies.

[Blackhatjack]

4. Here's another LINK re: Accounting Standards by Mob Rule ....

http://www.marketwatch.com/news/story/Accounting-standards-now-determined-mob/story.aspx?guid=%7B43B3FDAE%2DFCFB%2D46FE%2DA0AC%2D6B232C945510%7D

Quite simply the banks balance sheets are going to be divorced from reality, and they will find it difficult to find private investors who cannot rely upon the numbers a bank dreams up.

[Raineyb]

11. Great! Completely throw out every notion taught in a beginning Accoutnting class because

some know-nothing in Congress told you to.

I cannot wait to bring this up in class tonight.

Regards

[dflprincess]

6. Isn't this what Enron did?

And look how well that worked out.

[Blackhatjack]

9. Yes... and they keep huge debts off the books to inflate the bottom line. n/t

[Birthmark]

7. Grab the lubricating jelly.

This is gonna go on for a while.

[Warren DeMontague]

8. None of them along the line..

know what any of it is worth.

[Raineyb]

10. Oh for fuck's sake

This is only going to make things worse. It's also counter to what is taught in Accounting 101.

This is a terrible thing to do!

Regards