FASB Delays Off Balance Sheet Rule Implementation
This just in:
FASB VOTES 5-0 TO DELAY IMPLEMENTATION OF OFF BALANCE SHEET RULE.This is the absolute worst decision I can imagine. The market “needs” clarity. The financial institutions need to reveal what they have in their level 3 assets (search our site for ‘level 3′, we have discussed this in detail many times).
Level 3 assets are those financial instruments that can’t be priced to any current market price. And as such we can’t see the true risk associated with these institutions. Level 3 is a holding tank for anything that a bank or other institution can claim as not having a valid market for and so they can mark the assets to a “best guess model”.
The Financial Accounting Standards Board (FASB) was to put in place new rules for handling these assets and to being them up out of the basement and let the market establish a price. Their vote to delay this action is a clear sign that they wish to keep the bones buried for as long as possible. Full disclosure is what is needed to end this financial mess, not more “hide the losses”.
It might be that the derivatives exposure, which is massively overleveraged, can not handle the claims on the swaps.
Probably more like trillions, than billions.
BSC has 13 tril of this crap and is why they got a temp bail.
Don’t worry, just put it on the tax payer tab.
But is this tab going to be too large to pay off?
Probably.
So keep that smoke and mirrors trick going.
I am getting used to being treated like a mushroom. Being fed sh*t and kept in the dark.
Just keeps getting “curiouser and curiouser”
Hello Chuck…
Hope all is well.
Back from a 10 day Florida vacation.
Nice to be home again and on the
Rebel Traders site. No computer
during my trip; which was what I
needed.
Your right, Chuck. The Government
is officially outta control. Banning
the shorting of financials and brokerage
houses was bad enough, but now the
FASB vote this morning. Talk about
wholesale manipulation of the financial
process. We are really no better than
the Soviet Union. These guys need
their collective asses kicked.
Hope all is going well for you and Lisa!
Best,
Noel
By the way. If I’m reading the ADP correctly 4,000 of the 9,000 jobs added ARE IN THE FINANCIAL SECTOR! C’mon, are they hiring THAT many auditors to help with the futuere bank closures?
Nice Ruffcut!! lol “the fungus is among us”