The article indicates the accounting must change but the capital requirements will be delayed. This gives the market visibility to what was not transparent which is still a positive step.
Pretty clear the regulators are treating banks like babies.
One of the loopholes in the PPIP is the bank's buy each other's toxic assets through PPIP and the government underwrites the risk - it is like taking your toxic assets through the car wash. Just another example of a Treasury led taxpayer funded giveaway.
On Apr 06 02:51 PM Lonestar1 wrote:
> AS FASB has revised MTM accounting rule, the seller side (banks) > has no incentive to sell those toxic assets any more. Perhaps hedge > funds know this, and thus do not want to participate. But the funniest > thing is that big banks are very interested in setting up PPIP funds. > I guess the end result is these guys can swap toxic assets at much > higher prices ?
New Accounting Rule Delayed [View article]
Pretty clear the regulators are treating banks like babies.
Why Was the PPIP Extended Today? [View article]
On Apr 06 02:51 PM Lonestar1 wrote:
> AS FASB has revised MTM accounting rule, the seller side (banks)
> has no incentive to sell those toxic assets any more. Perhaps hedge
> funds know this, and thus do not want to participate. But the funniest
> thing is that big banks are very interested in setting up PPIP funds.
> I guess the end result is these guys can swap toxic assets at much
> higher prices ?