Comments: Are the "brightest minds in finance" finally onto something?

a couple months ago there was CSPAN program looking at congressional financing that mentioned in the session that repealed Glass-Steagall, the financial industry made $250m in contributions and in the session that approved $800B TARP, there was $2B in contributions from financial industry. More recently there was report that there was a total of $5B in funds from the financial industry during the period (nearly evenly divided between the two parties).

Posted by Lynn Wheeler at April 3, 2009 09:56 AM

additional articles about the FASB rule change:

The FASB Rally: More Dishonest Breathing Room For Banks
http://www.usnews.com/blogs/the-ticker/2009/04/02/the-fasb-rally-more-dishonest-breathing-room-for-banks.html
Mark To Market Eased: Making A Silk Purse From A Sow's Ear? Example Included Below
http://www.gather.com/viewArticle.jsp?articleId=281474977645377&grpId=3659174697241980&nav=Groupspace

Why We Need to Keep Mark to Market
http://www.dollarsandsense.org/blog/2009/04/why-we-need-to-keep-mark-to-market.html

from above:

Investors once believed that U.S. markets were sufficiently protected from political pressure and manipulation by a system of interlocking independent agencies and rule-making bodies -- some government-run, some not. That system is being dismantled, piece by piece, by political jawboning and rushed rule rewrites. Now, investors find themselves with fewer protections and weakened protectors.

... snip ...

and ...

FHLB, the ‘B’ stands for Bowsher
http://v2.ftalphaville.ft.com/blog/2009/04/03/54461/fhlb-the-b-stands-for-bowsher/
Seattle FHLB Had ‘Material Weaknesses’ in Internal Controls
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aoY83b_uD0ek

older post mentioning magnitude of problem:

Bank's Hidden Junk Menaces $1 Trillion Purge
http://www.bloomberg.com/apps/news?pid=20601039&sid=akv_p6LBNIdw&refer=home

from above:

So investors betting for quick solutions to the financial crisis could be disappointed. The tangled web that banks wove over the years will take a long time to undo.

At the end of 2008, for example, off-balance-sheet assets at just the four biggest U.S. banks -- Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. -- were about $5.2 trillion, according to their 2008 annual filings.

... snip ...


Posted by Lynn Wheeler at April 4, 2009 09:53 AM

Mayo Says Loan Losses Will Exceed Depression Levels
http://www.bloomberg.com/apps/news?pid=20601087&sid=a1yCkrhVtOks&refer=home

from above:

Banks committed the “seven deadly sins” of banking in trying to compensate for lower natural growth rates and will now feel the costs of those actions, Mayo wrote.

... snip ...

Posted by Lynn Wheeler at April 6, 2009 10:16 AM
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