Comments on: Ending the off-balance sheet charade

By: jerry

jerry — Sat, 19 Sep 2009 16:03:18 +0000

it said banks or gloden–s were in so..lvency, suddenly, all banks started making money, is there anything wrong, I am really happy someone else knows more than I do..

By: brewcrew

brewcrew — Fri, 18 Sep 2009 23:07:15 +0000

Jeffrey Skilling and Andy Fastow must be livid right now. These two are in jail for the exact same accounting shenanigans that are being allowed by the current administration. Ken Lay is spinning in his grave. Is it too late to hire Arthur Andersen as auditors of all this? I only fear that this will all end (again) someday in spectacular failure, with the little people being out their 401(k)’s.

By: Winston

Winston — Fri, 18 Sep 2009 15:34:38 +0000

“but bringing assets back on balance sheet will have a meaningful impact.”It will only have its _proper_ impact if they bring those assets back to the balance sheet at their real values instead of the government approved imaginary values now used to hide the fact that most of them are technically insolvent.

By: Casper

Casper — Fri, 18 Sep 2009 11:51:15 +0000

I am so glad somebody understands this, because I don’t.

By: fresno dan

fresno dan — Fri, 18 Sep 2009 10:25:57 +0000

I am with “eyekew”I hate to confess such ignorance, but what is the rationale or philosophy for “off balance” sheet accounting?does anyone have a link to a site or article that defends “off balance” sheet accounting? Seriously – I would be interested in the pros and cons of this idea.

By: daveinfo

daveinfo — Fri, 18 Sep 2009 05:20:40 +0000

Housing boosters have forecast turnarounds repeatedly since the market peaked in 2006, only to be proven wrong by plunging prices. And skeptics say they’re wrong again now.They argue that a deeply indebted consumer, a weak job market, expiring incentives and rising foreclosures spell a quick end to any housing rebound.http://www.housingnewslive.com/us-housing-news-articles.php

By: Rick

Rick — Fri, 18 Sep 2009 00:53:47 +0000

Didn’t a bunch of guys at Enron go to prison for this type of thing? Where is the Justice Dept? Where is the outrage?

By: Jas

Jas — Thu, 17 Sep 2009 19:28:46 +0000

Now! This is ridiculous, the banks have had two years now. With TARP it’s been what 9 months? They don’t need another year, especially “TARP for life” BofA. Come clean now before the economy falls further.

By: CB

CB — Thu, 17 Sep 2009 18:25:03 +0000

Though it may be a year off, this is the best news I’ve read in quite a while and gives me a reason to look forward to the future!However, there’s many a lobbyist ‘twixt proposals and implementation. But, what the heck, I’m going to try being an optimist as it has been a trying two years.

By: Ed

Ed — Thu, 17 Sep 2009 18:18:23 +0000

This seems foolish. With equity markets nice and bubbly again, it’s not very difficult for banks to sell stock. If regulators make clear that additional capital will be required soon, banks may act pre-emptively to raise it now.Haha, well, Rolfe, if they sell stock, then the existing stockholders get devalued and then how do the CEOs and CFOs collect fat bonuses if the stockholders take a hit? Banks don’t want to raise capital because it exposes just how bad their businesses are being run, and then the old boy network of board members and executive officers might be fired… that might be good for the company but it has long since stopped being about what’s good for the company… its now about what’s good for the people in charge… and what’s good for them right now is to keep this green-shoots charade going as long as possible, preferably with tax dollars.

By: VK

VK — Thu, 17 Sep 2009 17:11:52 +0000

Fed Flow of Funds report has shown Total Debt decrease for the first time since the 30′s I believe even with Govt spending.Also the biggest private sector contraction ever according to my reading of the data. Quite horrible, horrible figures. The economy is imploding and it appears we will reach a tipping point soon that will cascade us downwards.

By: eyekew

eyekew — Thu, 17 Sep 2009 16:31:23 +0000

Please explain to me why ANYTHING legitimate should be off balance sheet.

By: Arlene Duncan

Arlene Duncan — Thu, 17 Sep 2009 16:27:17 +0000

The banks should not be given time to ammend anything. After receiving bailout money they proceeded to buy smaller banks and small credit card companies and raise interest rates for no reason except GREED. This has not helped the everyday people by stimulating the economy, which was the purpose of the bailout as I recall. They used the time they Knew they had before rules on credit changed. The rules put puny limits on their ability to raise rates at their whim.