Adrienne Gonzalez

Goldman Sachs One-Upped Wells Fargo in Accounting Shenanigans

We all know the manipulation is happening so why not get a piece before the truth comes out in the wash? They can rewrite all the accounting rules they want - the problem being at some point the game is over, the question is whether or not those who understood what has been going on all along played along or not.

A load of bull if I ever saw one.

Exclusive: Big Banks' Recent Profitability Due to AIG Scam?

Cuomo is on the case: ftalphaville.ft.com/bl.../

So sit on that for a minute...

Will the Fed Finally Embrace Quantitative Easing Tonight?

Crank up the presses, Zimbabwe Ben is on his way.

This is unprecedented, and for Bernanke to believe that he is talented enough to ride the deflation wave to the perfect juncture so as not to set off a currency catastrophe is absolutely asinine on his part.

Does Mr. Bernanke believe that China is not going to notice this announcement somehow?

Run. Now.

Don't Blame Mark-to-Market for This Crisis

The CPAs don't really have a choice, BookValue. That's sort of how that works. They just go with what FASB dictates - the ineptitude of FASB is an entirely different subject and should be removed from this discussion entirely.

But it is certainly not for Congress to dictate accounting rules - when did these organizations get such power and who authorized this?

Don't Blame Mark-to-Market for This Crisis

BookValue,

Again, what about mark to market implies that these institutions load up their portfolios on this crap? Greed is not overseen by FASB, nor is it the accounting which dictated it was at all appropriate to blow the securities market through the ceiling.

henarl,

I'm sure ridding the accounting world of many current and possibly archaic rules would cure much financial malaise - but to the detriment of the industry as a whole. If we rewrite the rules simply because it is convenient, we are opening the sort of Pandora's box that the world is just not ready for. We do need to look forward - via well thought-out regulation and regulatory bodies who are not crippled by ineptitude a la the SEC. Not emergency plans hatched at the Federal Reserve. The over-reaching here is what bothers me, not the suggestion that the rules need an overhaul.

Don't Blame Mark-to-Market for This Crisis

BookValue,

I think you misunderstood. I'm not an FAS 157 purist. As much as FASB should take some blame for pulling moronic accounting rules out of their a$$ets, FASB did not tell these institutions to go out and load up on CDOs, CDSs, ad nauseum.

If MTM is rewritten or "modified" for the convenience of said institutions just because they are deemed important to the global economy (and I think the current economic spiral down the toilet proves what influence these institutions have on the larger picture), that essentially invalidates not only the responsibilities of FASB but the accounting industry as a whole. It says that these institutions and any others that may behave recklessly in the future can do whatever they want and the government will be happy to rewrite the playbook so they don't have to face the consequences of their actions.

Don't Blame Mark-to-Market for This Crisis

BookValue,

Don't get me wrong, FASB as well as the SEC are inept as well. The industry needs a makeover and badly.

But this is not the way to do it and is seriously overstepping Washington's power.

And if these financial institutions hadn't gobbled up securities like fiduciary crack addicts, maybe mark to market wouldn't be such a problem in the first place. It is that greed which destroyed the market and why should the accounting rule take the blame for that?

Don't Blame Mark-to-Market for This Crisis

Alright - to the critics, let's try a different path with this.

First of all, I don't write specifically for SA so if I curse like a sailor, that's my choice. I'm understandably upset as a member of the accounting industry to see ignorant, non-accountants treating rules as if they can be "adjusted" to make things more convenient for irresponsible parties. There is a reason for the rules in the first place.

Mark to market is NOT to blame for the crisis. And if mark to market needs to be reevaluated, then it is up to the regulatory bodies who spit out rules to accountants to decide that, not Capitol Hill, not the Fed, not the Treasury.

These CEOs would love nothing more than to make their bad decisions go away. Using MTM as a scapegoat accomplishes this, but at what cost?

It is encouraging their behavior. Sure, act as reckless as you want and we'll go ahead and make your bad decisions go away *poof* - what is to prevent them from behaving in such a way in the future?? Nothing if this boneheaded scheme works.

Should we also rewrite securities laws so Bernie Madoff doesn't have to spend 150 years in prison? It would be more convenient. But at what expense?

Boston Fed Head: Ditch the Bad Assets So Banks Can Focus on Future Prospects

InnocentsAbroad,

America will not do that because it is still under the hallucination that the Federal Reserve has its best interests at heart. Until America wakes up and accepts THAT singular fact, the system will remain broken beyond repair and the American people will remain chained in economic slavery.

End of story.

Boston Fed Head: Ditch the Bad Assets So Banks Can Focus on Future Prospects

WaveNet Pharma,

The problem with the "bad bank" idea or any of these "purge the bad assets" schemes is that inevitably the taxpayer will be left holding the bag.

If Mr. Rosengren insisted that these banks suffer with their own losses for irresponsible behavior, marked down their pathetic toxic assets and took a cut, I'd be far more liable to support the suggestion.

However, if the last four - five months have taught us ANYTHING, it is that in one way or another, the taxpayer will be on the hook for those losses. And that is just wrong.

Geithner will value the assets wrong and banks will make off with our loot. www.jrdeputyaccountant... Need I remind you how much we've sunk into Citi and AIG to date? I don't think so.