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Mark-to-Market Accounting | Bank REO Real Estate
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Citigroup loss is smaller than expected on accounting rule changes

April 17, 2009 by · Leave a Comment
Filed under: Stock Market News 

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BARF BLAHHHHH (excuse me), I can’t take this any more.  We mangled the mark-to-market accounting rules and now I am seeing positive spin on lesser losses from the Bailout King Citigroup.  Where is the outrage?  I am not going to gone on harping about this one.  If you have been following my writings then you know where I stand.   I will leave you with a suggestion that everyone watch “Bill Moyer’s Journal” with Bill Black (Former S&L Regulator).  He really sums it up, this crisis is disgusting me and I think its time to stand and take this country back to the RULE OF LAW and stop these financial oligarchs.

News (Reuters):

Citigroup Inc reported a smaller-than-expected first-quarter loss for shareholders as cost-cutting and improved investment banking and trading results helped offset red ink from consumer banking and credit cards.

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FASB to discuss mark-to-market accounting rule changes on Monday

March 14, 2009 by · Leave a Comment
Filed under: Policy News 

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One thing is for sure, even if they do change the mark-to-market accounting which is a bad idea if you are trying to restore confidence.   We will discover the value of those assets period.  You may ask, “what are the value of those bad assets”.

If we have to result to changing rules to keep our banks solvent, then the assets value must be much closer to 0% value compared their current book value that is 100% value.  If there is no market for those assets then I would say at this point they are worthless.  But in my opinion what they are really trying to do is make a way for all these banks to not have to declare losses on all those derivatives they are holding.

News:

The Financial Accounting Standards Board, which sets U.S. accounting rules, will discuss mark-to-market accounting guidance at its board meeting on Monday, according to its website.

The board says it will discuss “additional application guidance” that would clarify how mark to market is used in illiquid markets, according to the website.

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Goldman Sachs’ Blankfein wants Mark-to-Market rule to stay put

February 9, 2009 by · Leave a Comment
Filed under: Opinion 

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We completely agree with Mr. Blankfein’s opinion.  Just because people decided to overvalue assets to such excesses does not mean when things don’t go their way, we should abandon our accounting standards to preserve mal-investment.  This just shows that our current banking system is in fact “insolvent” and we have resulted to jiggering with our accounting methods to keep these banks and other financial institutions from going bust.  

We should make everyone come clean with their assets and liabilities ASAP and if you are solvent then we should assist them with taking over the good assets and if your insolvent, then your bond and shareholders takes the losses along with the bad assets.  Yes, we should let bad banks go under.  This is what will bring stability and confidence to the markets.  We are just prolonging our crisis and making it worse trying to bailout bad banks that made bad decisions when they were GREEDY

News:

Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein said the financial industry shouldn’t abandon the “mark-to-market” accounting rules that some banks blame for aggravating global economic woes.

The rules, which require banks to book profits or losses when asset values rise or fall, should be even more rigorous, Blankfein wrote in an op-ed piece published yesterday on the Financial Times’s Web site. New York-based Goldman’s adherence to the practice “was a key contributor to our decision to reduce risk relatively early” in the credit crisis, he wrote.

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