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August 2, 2009 at 8:46 PM #16129August 3, 2009 at 12:29 AM #440413CA renterParticipant
Somewhat related:
The Financial Accounting Standards Board (FASB) is in the process of making banks very unhappy. In a complete reversal from their revised policy released in April, it is considering vastly tightening mark-to-market requirements to include virtually all securities on a bank’s balance sheet. Yes, it even wants the very, very illiquid stuff marked-to-market.
http://business.theatlantic.com/2009/07/mark-to-market_is_back_–_with_a_vengeance.php
Might be nothing, but it could get interesting if regulators decide to bring back MTM rules. IMHO, the elimination of MTM rules is what’s given the appearance of “green shoots.” Note how the rule change was announced in mid-March, and enacted in April — exactly when we saw the reversal.
It is all part of the illusion…
August 3, 2009 at 12:29 AM #441188CA renterParticipantSomewhat related:
The Financial Accounting Standards Board (FASB) is in the process of making banks very unhappy. In a complete reversal from their revised policy released in April, it is considering vastly tightening mark-to-market requirements to include virtually all securities on a bank’s balance sheet. Yes, it even wants the very, very illiquid stuff marked-to-market.
http://business.theatlantic.com/2009/07/mark-to-market_is_back_–_with_a_vengeance.php
Might be nothing, but it could get interesting if regulators decide to bring back MTM rules. IMHO, the elimination of MTM rules is what’s given the appearance of “green shoots.” Note how the rule change was announced in mid-March, and enacted in April — exactly when we saw the reversal.
It is all part of the illusion…
August 3, 2009 at 12:29 AM #441016CA renterParticipantSomewhat related:
The Financial Accounting Standards Board (FASB) is in the process of making banks very unhappy. In a complete reversal from their revised policy released in April, it is considering vastly tightening mark-to-market requirements to include virtually all securities on a bank’s balance sheet. Yes, it even wants the very, very illiquid stuff marked-to-market.
http://business.theatlantic.com/2009/07/mark-to-market_is_back_–_with_a_vengeance.php
Might be nothing, but it could get interesting if regulators decide to bring back MTM rules. IMHO, the elimination of MTM rules is what’s given the appearance of “green shoots.” Note how the rule change was announced in mid-March, and enacted in April — exactly when we saw the reversal.
It is all part of the illusion…
August 3, 2009 at 12:29 AM #440945CA renterParticipantSomewhat related:
The Financial Accounting Standards Board (FASB) is in the process of making banks very unhappy. In a complete reversal from their revised policy released in April, it is considering vastly tightening mark-to-market requirements to include virtually all securities on a bank’s balance sheet. Yes, it even wants the very, very illiquid stuff marked-to-market.
http://business.theatlantic.com/2009/07/mark-to-market_is_back_–_with_a_vengeance.php
Might be nothing, but it could get interesting if regulators decide to bring back MTM rules. IMHO, the elimination of MTM rules is what’s given the appearance of “green shoots.” Note how the rule change was announced in mid-March, and enacted in April — exactly when we saw the reversal.
It is all part of the illusion…
August 3, 2009 at 12:29 AM #440613CA renterParticipantSomewhat related:
The Financial Accounting Standards Board (FASB) is in the process of making banks very unhappy. In a complete reversal from their revised policy released in April, it is considering vastly tightening mark-to-market requirements to include virtually all securities on a bank’s balance sheet. Yes, it even wants the very, very illiquid stuff marked-to-market.
http://business.theatlantic.com/2009/07/mark-to-market_is_back_–_with_a_vengeance.php
Might be nothing, but it could get interesting if regulators decide to bring back MTM rules. IMHO, the elimination of MTM rules is what’s given the appearance of “green shoots.” Note how the rule change was announced in mid-March, and enacted in April — exactly when we saw the reversal.
It is all part of the illusion…
August 3, 2009 at 8:02 AM #440433patbParticipantThere is a marked material difference between what the FDIC reports and
what the actual is.http://www.fdic.gov/news/news/press/2009/pr09133.html
consider the following
“As of June 19, 2009, First State Bank of Altus had total assets of $103.4 million and deposits of approximately $98.2 million. In addition assuming all of the deposits of the failed bank,
- Herring Bank will purchase approximately $64.4 million in assets.
The FDIC will retain the remaining assets for later disposition.”
on paper that is 5M in equity or 5% capital, not bad for a bank. a touch low,
but they should be able to increase equity.but notice the underlined part?
40M were shitty assets. FDIC is going to eat those. Figure it’s the same
way or worse in bigger banks, so yeah, FDIC is busted.August 3, 2009 at 8:02 AM #441208patbParticipantThere is a marked material difference between what the FDIC reports and
what the actual is.http://www.fdic.gov/news/news/press/2009/pr09133.html
consider the following
“As of June 19, 2009, First State Bank of Altus had total assets of $103.4 million and deposits of approximately $98.2 million. In addition assuming all of the deposits of the failed bank,
- Herring Bank will purchase approximately $64.4 million in assets.
The FDIC will retain the remaining assets for later disposition.”
on paper that is 5M in equity or 5% capital, not bad for a bank. a touch low,
but they should be able to increase equity.but notice the underlined part?
40M were shitty assets. FDIC is going to eat those. Figure it’s the same
way or worse in bigger banks, so yeah, FDIC is busted.August 3, 2009 at 8:02 AM #441036patbParticipantThere is a marked material difference between what the FDIC reports and
what the actual is.http://www.fdic.gov/news/news/press/2009/pr09133.html
consider the following
“As of June 19, 2009, First State Bank of Altus had total assets of $103.4 million and deposits of approximately $98.2 million. In addition assuming all of the deposits of the failed bank,
- Herring Bank will purchase approximately $64.4 million in assets.
The FDIC will retain the remaining assets for later disposition.”
on paper that is 5M in equity or 5% capital, not bad for a bank. a touch low,
but they should be able to increase equity.but notice the underlined part?
40M were shitty assets. FDIC is going to eat those. Figure it’s the same
way or worse in bigger banks, so yeah, FDIC is busted.August 3, 2009 at 8:02 AM #440965patbParticipantThere is a marked material difference between what the FDIC reports and
what the actual is.http://www.fdic.gov/news/news/press/2009/pr09133.html
consider the following
“As of June 19, 2009, First State Bank of Altus had total assets of $103.4 million and deposits of approximately $98.2 million. In addition assuming all of the deposits of the failed bank,
- Herring Bank will purchase approximately $64.4 million in assets.
The FDIC will retain the remaining assets for later disposition.”
on paper that is 5M in equity or 5% capital, not bad for a bank. a touch low,
but they should be able to increase equity.but notice the underlined part?
40M were shitty assets. FDIC is going to eat those. Figure it’s the same
way or worse in bigger banks, so yeah, FDIC is busted.August 3, 2009 at 8:02 AM #440633patbParticipantThere is a marked material difference between what the FDIC reports and
what the actual is.http://www.fdic.gov/news/news/press/2009/pr09133.html
consider the following
“As of June 19, 2009, First State Bank of Altus had total assets of $103.4 million and deposits of approximately $98.2 million. In addition assuming all of the deposits of the failed bank,
- Herring Bank will purchase approximately $64.4 million in assets.
The FDIC will retain the remaining assets for later disposition.”
on paper that is 5M in equity or 5% capital, not bad for a bank. a touch low,
but they should be able to increase equity.but notice the underlined part?
40M were shitty assets. FDIC is going to eat those. Figure it’s the same
way or worse in bigger banks, so yeah, FDIC is busted.August 3, 2009 at 9:53 AM #441041AnonymousGuestBefore some of the bulls call Denninger a headcase, Dylan Ratigan, he formerly of CNBC comments on this “greatest theft ever” with guest Eliot Spitzer, pulling no punches.
August 3, 2009 at 9:53 AM #441213AnonymousGuestBefore some of the bulls call Denninger a headcase, Dylan Ratigan, he formerly of CNBC comments on this “greatest theft ever” with guest Eliot Spitzer, pulling no punches.
August 3, 2009 at 9:53 AM #440970AnonymousGuestBefore some of the bulls call Denninger a headcase, Dylan Ratigan, he formerly of CNBC comments on this “greatest theft ever” with guest Eliot Spitzer, pulling no punches.
August 3, 2009 at 9:53 AM #440638AnonymousGuestBefore some of the bulls call Denninger a headcase, Dylan Ratigan, he formerly of CNBC comments on this “greatest theft ever” with guest Eliot Spitzer, pulling no punches.
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