Does anyone actually know the extent to which TARP, changes in the way accounting is now reported, and the moratorium on foreclosures contributed to recent quarterly results? Are we talking about the difference between big losses and a profit? Where did TARP funds sit in the accounts, and how did they effect profitability? If it was a loan, then it sits on the balance sheet as a liability. If it was attributed to cash reserves, that presumably it sits on the other side of the balance sheet, but I don’t see how it could contribute directly to the profit and loss account, except for interest earned.
