Accounting Rules Hide Bank Loan Losses

bloomberg.com:

June 5 (Bloomberg) -- Big banks in the U.S. say they're on the mend. The five largest were profitable in the first quarter, rebounding from record losses for the industry in the fourth quarter. Share prices have jumped, with the KBW Bank Index doubling since March 6.

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Read the whole story: bloomberg.com

Comments

[Sundialsvc4]

We should be wise enough not to listen to these people.

Their "untold wealth" is based upon nothing but lies. They committed enormous securities fraud, selling trillions of dollars worth (sic...) of worthless securities, and they have missed no opportunity to inflict the scourge of usury and even more fraud against hundreds of millions of people ... and that's just in this country.

They clearly know nothing at all about the businesses of finance, banking, or insurance. (I mean, how can you possibly go so wrong when the product that you sell is ... money? Dunno, but they did.)

They claim that things "must be this way," but it's just another lie. "It's the end of the world as we know it," why, how many hundreds of times over the last eight-plus years have we heard this?

The only thing ... the ONLY thing ... that these people are stupendously GOOD at is bribing public officials. (And let the record show that the halls of Congress are filled with arrogant fools who are stupid enough to take them ... and thus, to be taken.)

This country's Constitution mentions two "high crimes" specifically by name: treason, and BRIBERY.

When the people of this country (and now, so many other people in this world) spoke of "change," I really don't think that many leaders truly understood them.

[jmpurser]

Agreed. After 8 years of the financial rape and pillage of this country President Obama has hired movers to help the banks carry off their loot.

But we don't have money for health care or to rescue mortgages.

[ztck5356]

What would the purpose be of hiding these bad numbers? We all know it's bad. Why hide them?

[jmpurser]

Are you kidding? If the real numbers come out it becomes obvious that ANY solution besides nationalizing the banks is just corporate welfare and aiding theft.

We hide the numbers because very powerful people want to stay on the gravy train.

[higgins1990]

Ahh, gotta love the fresh transparency that Obama brought to the White House. Oh, wait, that was just another empty campaign slogan. My bad.

[trimom]

The FASB is an independent agency from the government.

[schatsie]

this is what THIRD World Countries do, not developed or developing countries.­..but then we have given up SEC enforcement for the last 8 years except for Martha Stewart...­....LOL...

[ztck5356]

What Martha Stewart did is minor compared to the crimes committed by the last Administration. Yet, they are not being punished. This is just wrong.

[Artos]

It's as I've said before, all fiction, and it will come home to roost. Geithner and Bernanke are to blame for this, by having allowed these lies.

[watchTVgetSTUPID]

I did not expect the Obama Administration to steal us blind

I voted for change and this is no different than Cheney

[Kassandra]

Important article from OpEd NYT:
The Economy Is Still at the Brink
http://www.nytimes.com/2009/06/07/opinion/07cohanWEB.html

Pretty scary stuff. Its' Herbert Hoover time......­.....

[watchTVgetSTUPID]

If it is true as said in the article that the stimulous plan made 150,000 jobs, Obama's decision to not support the auto industry has already eliminated 150,000 jobs. Instead of demanding Chrysler and GM shrink market share and declare bankruptcy, Obama could have saved them by enforcing balanced trade. In April Geithner claimed China was not manipulating their currency. Geithner is not the friend of American industry. Geithner is the friend of foreign importers.

Nothing else matters about Obama even though I voted for him. If he supports foreign importers OVER American workers, that is all I need to know.

http://www.gregpalast.com/grand-theft-auto-how-stevie-the-rat-bankrupted-gm/

[smiththomas]

Its good for the economy and good for our country to allow for the positive impact of doing away with the mark to market effect on the bottom line. You have seen a positive effect of this when the banks were able to raise capital. Why produce a negative blog regarding this with the potential of creating a negative attitude. I serves no purpose except producing another big bad bank story.

[Artos]

The reason for telling the truth is because it is the truth. Changing the accounting practice rules only serves one purpose and that is to deceive. It is blue smoke and mirrors, obfuscation, prestidigitation or outright lying, call it what you will it is the same thing. Those perpetrating the scheme did it in order to lie to us. Are we allowed to do this in our accounting? If we did it on our taxes would we be favored with Governmental assistance in our actions. I very much doubt it. Unless you yourself are an exec or accountant working for these banks and it is benefitting you, i can't help but wonder why you would enjoy this being lied to. Do you really think that you'll benefit from it in the long run otherwise? This will eventually come home to roost for all of us.

[trimom]

Agreed. Transparency is always better.

[smiththomas]

Reality has a lot to do with perception. An example is when a person is confident they achieve more. This is why consumer confidence is a measure of the economy. The fact that the perceptions allowed the banks to raise capital is important for the health of the system.

[iamwatching]

This is no surprise. Why were you, in the media, so fast to applaud all these manipulations? Why could we not count on you to do your jobs and investigate what the results of this would be before you all signed on? Educated people knew what this meant. Ludicrous!

[PhilipTaylor]

We on HP have been saying this for well over a month!

There is NO way a measly $12.8 Trillion (one years GDP) can solve the $Hurdred(s) of Trillion in Toxic Debts these corrupt Wall Street mafia put "OFF-THE-BOOKS" using the ENRON rule!

Removing Mark-To-Market simply makes it easy to continue hiding it from Americans.

People simply have NO idea of the magnitude of the GREED and CR00KEDNESS of these modern day M0B members!

When Americans find out how massive the Wall Street Corruption is, it will be like Argentina, people will be in the streets banging on pots with metal spoons or worse.

But the Banks and the FED are still managing with the cooperation of the Media to hid it! Wall Street Executives need to go and then be investigated and with evidence of

MANUFACTURED INSIDER TRADING
MISREPRESENTATION OF PRODUCTS

Be prosecuted!
__________­__________­__________­__________­_____

Until honest accounting rules are required and "OFF-THE-BOOKS" accounting is made illegal as it always was before ENRON and Arther Anderson played their games the Wall Street CR00KS will continue to mislead us.
__________­__________­__________­_____

Wall Street created the equivalent of $7 million per family in Toxic Debts!

$700,000,0­00,000,000

divided by 100,000,000 families =

$7,000,000 per family!

This pile of "sh" has nothing to do with what America is worth!

[Carolab]

Andy Kroll: Six Ways the Financial Bailout Scams Taxpayers

(Andy was on Ring of Fire today)

http://www.tomdispatch.com/post/175075

[Carolab]

Also, find the archived show that aired today (starting Monday) at This American Life called "The Watchmen".

[PhilipTaylor]

Excellent - More people are making these points!

[PhilipTaylor]

It is time to balance the blue collar to white collar ratio in prison!

I am sure there are hundreds of thousands of White Collar cr!minals to be housed to do just that! Balance the ratio!

The problem is their pockets are lined with ill-gotten money so they can f!ght for years unless those funds are frozen like Madoff!

[watchTVgetSTUPID]

The Banksters have their hand on the throat of workers and they are squeezing hard. Check out this investigative journalism from Democracy Now. You will see what an illegal shaft to the workers the auto bailout is. No surprise the usual Wall Street shysters will make $6 billion.

http://www.gregpalast.com/grand-theft-auto-how-stevie-the-rat-bankrupted-gm/

[ejhickey]

good link / good story.

[PhilipTaylor]

When they round up Dimon, Blankfein, Lewis, John Paulson, Soros, and the rest and match them into court for indictment then we will know there is HOPE for AMERICANS!

Until then they own Congress and their Votes! We must f!ght for Campaign Reform to take our Government back into the hands of the people!

Andrew Jackson beat the Banks and lived to 78 and we need that kind of determination today!
__________­__________­__________­_

TIME TO REFORM CORRUPTION IN CAMPAIGN FUNDING SYSTEM

Simple Solution to PROTECT OUR Congress Members Votes so votes are NOT sold to Highest Bidders:

1. Setup a Government Contribution Acceptance and Funds Distribution Agency
2. Funnel all Political Contributions through this agency
3. Uses strict formulas for allocating funds to House+Senate Members
4. "Blindly" distribute lump sums twice per year to Politicians - No KNOWN SOURCES of funds!
5. Reserve part of funds for those New Candidates that meet campaign funding criteria
6. Two Term Limits for Senators
7. Four Term Limits for House Members

[IDIOTA]

Tax dollars, manna. Banks, most favored. Capitalism, deified.

[toyboat]

What do you mean new accounting rules? It seems to me that that's been the case for quite some time now.

[IDIOTA]

Is this like "reported income"?

[trimom]

Sort of. It affects reported income.

[FrozenNorthObserver]

Banksters have never had so good since O came to town. The rubes have been expertly fleeced, Chicago style.