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No shocker, U.S. bank regulators postpone indefinitely the January 1 implementation of Basel III...

No shocker, U.S. bank regulators postpone indefinitely the January 1 implementation of Basel III bank capitalization rules "due to the wide range of views," expressed by those affected.
Comments (8)
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    so sad....but yes we knew it to be true....bankers rule...
    9 Nov 2012, 09:58 AM Reply Like
  • kwm3
    , contributor
    Comments (2453) | Send Message
     
    This is not good news. Basel III was/is important... it is tough to bring together in such a complex manner so many disparate interests--but that doesn't mean you walk away from it.
    9 Nov 2012, 11:19 AM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (1888) | Send Message
     
    There are problems out there (oh really?) in the banking industry that are really not fixable (or solvable or repairable) however, glossy paint works for a while. They keep talking about the fiscal cliff and I keep worrying about it. They have successfully talked the REIT market into the toilet, and soon their talking will put faith in our banking system too. About the time we all feel fat, dumb and happy, the collapse will follow.
    I bought two stocks a few days ago, NMM and TEU, on advice and due to their dividend history and no bad news, in fact, pretty good numbers etc. I am now down 8% or more on the trade, and it is like a yoyo, precisely falling into the pattern of the lay investor and the traps out there. I will hold until my threshold of 10% loss is hit, then I will go away to the local pub and lick my wounds. Pretty soon now, I will enter a retiree's world of investing, and may just pull in my horns totally, buy annuities, collect my SS and be quiet. It isn't what I want, I enjoy the chase, but, not being chased time after time.

     

    So, stay in touch, I will try to help me 1st, then you.

     

    Capt. Brian
    The Lost Navigator

     

    B E W A R E...
    9 Nov 2012, 12:08 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    Basel III is like IFRS, a really bad idea.
    9 Nov 2012, 12:30 PM Reply Like
  • Gloube
    , contributor
    Comments (104) | Send Message
     
    Could you please elaborate on why IFRS is a bad idea? (no irony here, I'm interested in your opinion)
    9 Nov 2012, 12:45 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    I look at it through mining companies and the accounting is much more fuzzy than GAAP.

     

    One example is a warrant the was offered in a takeout of a junior mining company. Because the warrant was not offered to all shareholders of the company it needs to be listed as a liability and marked to market every quarter which increases earnings volatility. When commodity prices increase, stock prices increase, which means the liability increases causing a negative mark to market on the Income Statement and lower profits. When commodity and stock prices fall the opposite happens.

     

    IFRS is more subjective and less transparent than the rules based GAAP which will lead to more judgment being taken by managers trying to hit the quarterly numbers.

     

    These are not American standards but European standards which are not well suited for the number of global multi-national businesses headquartered in the US.

     

    Under IFRS the Income Statement and Balance Sheets become less useful and the Cash Flow Statement becomes the most important component of security analysis although they move items around into odd areas as well.
    9 Nov 2012, 01:07 PM Reply Like
  • minecanary
    , contributor
    Comments (411) | Send Message
     
    Hmmm, maybe it's because they would have to instantly declare 80% of the banks insoluble?
    9 Nov 2012, 01:08 PM Reply Like
  • Herr Hansa
    , contributor
    Comments (3079) | Send Message
     
    This may place some pressure upon the European Central Bank to delay Basel III targets in January 2013 too.
    9 Nov 2012, 04:28 PM Reply Like
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