Post by jeffolie on Aug 27, 2007 11:09:28 GMT -6
mark-to-make-believe
bring down the barriers established after the Great Depression
get around capital requirements
A dishonest, corrupt system such as the one that exists in the United States is all about anti-transparency and utilizing the Milky Way. That way looters and white collar criminals can hide their activities and exploit fictitious capital, often with the full support of government, legislators, and regulators. We are now seeing overt efforts to help those who should be exposed to the light of day to instead crawl further into dark shadows, caves and crevices to cover up their ill got gains.
One of these techniques mentioned in Wednesdayfs post is FASB rule 157 on glevel 3 accounting. Incredibly just when mark to model accounting is falling into disrepute, along comes new rules that effectively allows mark to gwhat ever you feel likeh.
Then therefs Level 3. Under Statement 157, this means fair value is measured using gunobservable inputs.ff While companies canft actually see the changes in the fair values of their assets and liabilities, theyfre allowed to book them through earnings anyway, based on their own subjective assumptions. Call this mark-to-make-believe.
Next, the Federal Reserve unilaterally moves to bring down the barriers established after the Great Depression to separate federally insured banking from brokerages and investment banking activities. Combined with little if any regulation, and the anti-transparent behavior already in place, this one is an open invitation for further abuse.
Next we have the FT stepping up to the plate with an article on how financial institutions set up off balance sheet conduits for gmore efficient use of their regulatory capitalh. The reality of course is that these are simply stupid animal tricks to get around capital requirements in a deregulated banking climate.
wallstreetexaminer.com/blogs/winter/?p=1027#more-1027
bring down the barriers established after the Great Depression
get around capital requirements
A dishonest, corrupt system such as the one that exists in the United States is all about anti-transparency and utilizing the Milky Way. That way looters and white collar criminals can hide their activities and exploit fictitious capital, often with the full support of government, legislators, and regulators. We are now seeing overt efforts to help those who should be exposed to the light of day to instead crawl further into dark shadows, caves and crevices to cover up their ill got gains.
One of these techniques mentioned in Wednesdayfs post is FASB rule 157 on glevel 3 accounting. Incredibly just when mark to model accounting is falling into disrepute, along comes new rules that effectively allows mark to gwhat ever you feel likeh.
Then therefs Level 3. Under Statement 157, this means fair value is measured using gunobservable inputs.ff While companies canft actually see the changes in the fair values of their assets and liabilities, theyfre allowed to book them through earnings anyway, based on their own subjective assumptions. Call this mark-to-make-believe.
Next, the Federal Reserve unilaterally moves to bring down the barriers established after the Great Depression to separate federally insured banking from brokerages and investment banking activities. Combined with little if any regulation, and the anti-transparent behavior already in place, this one is an open invitation for further abuse.
Next we have the FT stepping up to the plate with an article on how financial institutions set up off balance sheet conduits for gmore efficient use of their regulatory capitalh. The reality of course is that these are simply stupid animal tricks to get around capital requirements in a deregulated banking climate.
wallstreetexaminer.com/blogs/winter/?p=1027#more-1027