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Big Banks: "You Will Cancel FASB 166 So We Can Continue Pretending All Is Good... Or We Will Kill Lending Even More"

Tyler Durden's picture


At first it was just the smaller banks, but now the big boys have joined the collective cry against FASB 166 and 167, according to which beginning January 1, banks will likely see up to $900 billion in off-balance sheet assets being onboarded to bank balance sheets. This would likely mean banks need to dramatically increase their Tangible and Tier 1 Capital to offset the capital needed to account for possible asset deterioration. And that, of course, is unacceptable to banks who know too well the deep shit they still find themselves in.

The irony is that banks, which have already virtually halted lending to those in need of credit, are threatening they will cut any available credit even futher. How anyone could admit to being stupid enough to believe this latest episode of Mutual Assured Destruction courtesy of the US banking system is a mystery. And yet this is precisely the type of "gun against the head" negotiating that Max Keiser was fulminating against, and that the banks are once again perpetrating:

“With any increase in required capital, a banking institution is likely to reduce the amount of lending using such securitization vehicles, as well as other lending,” the American Bankers Association wrote in a letter to regulators. The association, the nation’s biggest banking lobby, suggested that any transition period should be three years at least, with no change in regulatory capital impact in the first year.

Taking a cue from the ABA, the big 3 record earners have decided to join in: last thing one would want is JPMorgan not earning yet another record amount in Q4. First Citi chimes in:

Banks should be given three years to raise capital for offsetting assets and liabilities that must be brought onto their balance sheets, Citigroup Chief Financial Officer John Gerspach said yesterday in a letter to regulators. Requiring banks to “assume the risk-based capital effects immediately, or even over one year, is an undeniably severe penalty,” he wrote.

Then you have record earner JPMorgan:

The capital requirements “will have a significant and negative impact on the amount of consumer-conduit funding that will be made available by U.S. banks,” said the letter from JPMorgan, the New York-based bank that this week reported its biggest quarterly profit since the subprime-mortgage market collapsed in 2007.

“We strongly support a phase-in period for the rule changes,” according to JPMorgan’s letter, which was signed by Managing Director Adam Gilbert. The change would take effect for annual reports after Nov. 15.

And last, Wells Fargo:

The rule “could lead to the result that every $1 billion of additional capital held from newly consolidated assets ‘crowds out’ more than $15 billion in loans,” Paul Ackerman, Wells Fargo’s treasurer, wrote in a letter yesterday to the Fed, FDIC, Office of the Comptroller of the Currency and Office of Thrift Supervision. The comment period ended yesterday.

And just so it is clear it is not just the ABA which is using the "we will stop lending" trump card, here is Citi:

Citigroup, the New York-based bank that yesterday reported a third-quarter profit of $101 million, argued that bringing off-balance vehicles onto its books would lead the bank to cut financing for securitizations that fuel credit-card lending, residential mortgages and student loans. Additional consumer loans will be cut as well, Citigroup said.

“We do not plan to reduce lending in only those businesses specifically impacted by the incremental regulatory capital requirements,” Gerspach wrote.

The FASB has proven it will do anything to enforce the Wall Street kleptocracy in its current state, and will bend any which way to make sure that assets marked-to-myth continue to fool gullible, TV watching idiots into buying bank stocks even as up to $750 billion in current assets may be mismarked from book to fair value. One can, however, be positive that even if the FASB grows a backbone, then the SEC, the FASB and the administration will promptly put any such ossification attempts on the backburner. Expect no bank to be accountable for its share in the nearly $1 trillion of off-balance sheet "assets" until the next president is elected.

h/t Deadhead


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Fri, 10/16/2009 - 15:51 | 101182 Veteran
Veteran's picture

Financial terrorists.  In Iraq we would have shot all of them

Fri, 10/16/2009 - 16:05 | 101198 MsCreant
MsCreant's picture

What are we waiting for?

Fri, 10/16/2009 - 16:10 | 101204 MsCreant
MsCreant's picture

Starfishes. Fight club. Down with spiders and squids.


Fri, 10/16/2009 - 20:04 | 101493 tip e. canoe
tip e. canoe's picture

an absolutely wonderful book that is.

the answers are right in front of our face if we only took the blinders off to see, yes?

maybe it will take a fool to guide us there.

balloon boy perhaps?

Fri, 10/16/2009 - 16:53 | 101287 ZerOhead
ZerOhead's picture

Maybe we can just do what the Italians do in Afghanistan... bribe them all...

Sat, 10/17/2009 - 21:32 | 102399 Cognitive Dissonance
Cognitive Dissonance's picture

I heard the most amazing blurb on this. The French, who replaced the Italians but were not told about the bribes, were ambushed by the locals who were unhappy the bribes were no longer forth coming. The French were furious that they weren't told about the bribes by the Italians before they replaced the Italians.

The French minister said something along the lines of "it could possibly be acceptable to pay bribes but it was insane not to tell your allies about the bribes because it rendered our threat assessment completely worthless."

The French thought they were taking over a peaceful place and didn't armor up their troops nor train the troops for the higher threat environment they didn't know they were facing.

Talking about friends screwing friends. Of course, the Americans have paid bribes for years in Iraq.

Sun, 10/18/2009 - 14:50 | 102760 ZerOhead
ZerOhead's picture

Ha ha ha... don't forget the millions they paid the warlords and tribal chiefs in Afghanistan to rig the "Loya Jurga" necessary to install our ex-oil executive Karzai into the "presidency".

Fri, 10/16/2009 - 21:17 | 101546 Anonymous
Anonymous's picture

The same will happen here if they keep this shit up.

Fri, 10/16/2009 - 16:02 | 101189 etrader
etrader's picture

The Usual outcome for the taxed public.

KY at the ready, bend over, touch your toes & think of England....

Its for your own good they say......

On a side note David Tice is on Bloomberg around 16:10 est

Fri, 10/16/2009 - 16:11 | 101200 deadhead
deadhead's picture

Thank you for publishing this Tyler.

I'll have more to say on this going forward and I would urge people to keep a close eye on this one as it develops.

I add that Geithner's interview on cnbc dot com with bartiromo includes his "i really mean it this time" thoughts that capital ratios must be increased to offset risk. 

I believe he has also said recently (couple of hundred times) that he "supports a strong dollar"

Does this phucking guy really believe that anybody in their right mind actually believes him and lends him any credibility whatsoever? 

Fri, 10/16/2009 - 16:27 | 101243 Anonymous
Anonymous's picture

when someone says he really means it this time
he means that he doesn't mean it....he is also
announcing to the world that he is an oversized
over-vinagraitted douche bag...

the chinese students can tell you how much respect
they have for him...

he support a strong dollar like rerun supports a
strong bra....

Fri, 10/16/2009 - 16:57 | 101293 ZerOhead
ZerOhead's picture

He does support a strong dollar DH...

Canadian... Australian... just not US dollar.

Fri, 10/16/2009 - 17:43 | 101347 deadhead
deadhead's picture


Fri, 10/16/2009 - 16:09 | 101203 Anonymous
Anonymous's picture

Seems like a normal reaction. The amount a bank can lend is dependent on how much capital it is required to hold. The real underlying issue is that most of these banks are really insolvent and should be out of business, which would stop them from lending at all.

Fri, 10/16/2009 - 22:04 | 101596 dnarby
dnarby's picture

I say we call their bluff.  They'll go BK.  We'll replace the banking system.
Trying like hell to see the downside with that...

Fri, 10/16/2009 - 16:11 | 101205 Stuart
Stuart's picture

Financial Jihadists....  I like that term.  It certainly fits.  

Fri, 10/16/2009 - 16:13 | 101210 Hondo
Hondo's picture

Take the bastards over.  No salaries and no bonus.........the majority of Americans have received no salary increases yet the idiots who brought this on are getting salary increases and a bonus to boot.  This is absolute insanity!

Fri, 10/16/2009 - 16:16 | 101219 Assetman
Assetman's picture

Oh my.  Let them not loan anymore.  I'm so scared, I'm about to fall asleep.

Fri, 10/16/2009 - 16:20 | 101230 curbyourrisk
curbyourrisk's picture

Go ahead.....make our day...


I hope the Government calls their fucking bluff.  Let them stop lending...We can all dance on their shallow graves.  I am sure there are a few banks (or credit unions) out there that have not shot themsleves in the foot, thigh, stomach and both shoulders.  I am sure there are few banks out there with balance sheets that still allow them to lend.  Let us all reward them by giving them our business.  Please stand and be noticed.  Don't worry...Goldman is not looking....

Fri, 10/16/2009 - 16:36 | 101241 etrader
etrader's picture

Government played its hand & when "all in" with the banks, when they feared ( paulson spin)

riots , food shortages, military coup ect...ect...

The banks will get what they want as government is even more "over a barrel" than before

this mess started....


Fri, 10/16/2009 - 17:50 | 101349 sgt_doom
sgt_doom's picture

"I hope the Government calls their fucking bluff."

Seriously, you are kidding, right?  They happen to own the government.  And they have placed their own people in it to ensure it stays theirs (Diana Farrell, Laura Tyson, Timothy Geithner, Larry Summers, Gary Gensler, Richard Holbrooke, Robert Hormats, Herbert Allison, Peter Orszag......

Fri, 10/16/2009 - 18:15 | 101382 Anonymous
Anonymous's picture

I wish you guys would process the information correctly the only one I see that gets it sgt_doom in his post. Its not politics or political leaders . The US government has been made a branch of Goldman and the banks... not the other way around. So give up the Obama this, congress that, and get on track . Saying the government is at fault is like saying the soldier is at fault for accepting the bullet that was fired into him. Right Miles? They dont allow it to happen, they like we cant rise above the plan set forth by the ruling class. Money rules, not politicians.

Fri, 10/16/2009 - 20:24 | 101505 Howard_Beale
Howard_Beale's picture

I think it is far deeper than that. To put things in a long term historical perspective (as in the rise and fall of any empire):

The Cycle of Nations:

From spiritual faith to great courage.

From courage to liberty.

From liberty to abundance.

From abundance to selfishness.

From selfishness to complacency.

From complacency to apathy.

From apathy to dependency.

From dependency back again into bondage.

--Sir Alex Fraser Tyler

Fri, 10/16/2009 - 21:17 | 101544 MinnesotaNice
MinnesotaNice's picture

That is great... I loved it!

Fri, 10/16/2009 - 23:37 | 101686 ZerOhead
ZerOhead's picture

Especially the bondage part...

Fri, 10/16/2009 - 21:54 | 101583 Miles Kendig
Miles Kendig's picture

A deep well indeed.. For more than a few decades.

All The Best from Layne

Fri, 10/16/2009 - 21:47 | 101577 Anonymous
Anonymous's picture

Yes, its true... THE BANKS ARE OUR GOVT!!

If our Spineless and CORRUPT elected officials will not step up to regulate the criminal banks that have extorted us for trillions, we the people, must collectively TAKE ACTION.

CHOSE NOT to do business with these big banks. Chose to put your money with one of the ethical, small lending institutions that are being thrown to the wolves by our govt. right now.

Let's put them out of business once and for ALL!!

Fri, 10/16/2009 - 16:20 | 101232 Anonymous
Anonymous's picture

Would make inflation less of a problem

Fri, 10/16/2009 - 16:20 | 101233 Stuart
Stuart's picture

"Expect no bank to be accountable for its share in the nearly $1 trillion of off-balance sheet "assets" until the next president is elected."

And people wonder why our dollar is falling as creditors lose faith.   You gotta laugh at how dumb and/or blind some analysts are.  

Fri, 10/16/2009 - 17:53 | 101355 sgt_doom
sgt_doom's picture

"Gentlemen, we will create holding companies to hide our ownership, then years later, we will create SIVs, SPVs and SPRVs (for the insurance crooks) to hide our debt.  It is a surefire solution."

Daddy Warbucks

Fri, 10/16/2009 - 16:26 | 101242 taraxias
taraxias's picture

"Expect no bank to be accountable for its share in the nearly $1 trillion of off-balance sheet "assets" until the next president is elected."


Why, what's going to change then ?

Fri, 10/16/2009 - 16:39 | 101261 Benthamite
Benthamite's picture

I was thinking the same thing - I don't think anything will.  Corporate America owns those who represent us.  By the way, still no response from my State Senator encouraging him to sign the letter to Turbo Tax Tim to end TARP.  Frustrating, at the least.


Any suggestions... anybody?


"Fascism should more appropriately be called corporatism because it is a merger of state and corporate power."





Fri, 10/16/2009 - 17:54 | 101362 sgt_doom
sgt_doom's picture

I was thinking that by that time, the banks would have finally consolidated into the ONE WORLD CORPORATION (which may be their ultimate goal).

Fri, 10/16/2009 - 16:49 | 101282 Enkidu
Enkidu's picture

The banks are the government! Can't $22 bill in a bonus pot (Goldmanballs) qualify as 'capital'?

Fri, 10/16/2009 - 16:31 | 101251 cougar_w
cougar_w's picture

Isn't this kind of stand bordering on treasonous? What if the banks of the time had come out in the weeks following the Japanese attack on Pearl Harbor and said "Looks like you guys are in a bind. Give us something we want, otherwise we're going to hold  back on financing your [war|recovery]" ?

Not that I think maintaining BAU is patriotic or something. But if you did beleive that, this stance would be shocking.

Wouldn't it?


Fri, 10/16/2009 - 16:39 | 101260 aldousd
aldousd's picture

Haha! You OBVIOUSLY haven't been paying attention. It's treasonous to suggest that Barack Obama is anything but the savior of all mankind. It's treasonous to suggest that the United States is in financial trouble. It's treasonous to suggest that Bank of America was told by our government to lie for the sake of preserving the status quo, (when in fact, they were only told by their lawyers, and we know those are bad!)  It's not at all treasonous to hold the taxpayers hostage for the sake of large banking institutions who otherwise have no means of survival.  Where is your head?

Fri, 10/16/2009 - 16:51 | 101285 MsCreant
MsCreant's picture

Amen. Treason to take the red pill. Blue pills are available to all patriots in the new healthcare program.

Fri, 10/16/2009 - 16:34 | 101255 digalert
digalert's picture

C'mon, this is bullshit! I keep thinking my TV is going to black n white and Rod Serling appears with a cigarette saying "you have entered another world, you are in the twilight zone"

Fri, 10/16/2009 - 16:42 | 101267 small watcher
small watcher's picture

"Another dimension"?

"Another World" was a soap. If that's where we're going, we really are in trouble...

Fri, 10/16/2009 - 16:38 | 101258 Anonymous
Anonymous's picture

Why don't you all americans do something about this. Effin revolt already. The bankers are laughing at you each time they take money out of you wallet and put it in their pockets. You guys, collectively, are stupid, weak and pathetically ambivalent to the point where you think writing in blogs will mean anything. Grow a set of balls and take some action.

Fri, 10/16/2009 - 16:41 | 101263 aldousd
aldousd's picture

At least there aren't going to be any more bank failures. Phew.

Fri, 10/16/2009 - 16:41 | 101264 Anonymous
Anonymous's picture

Why don't americans revolt on this news? The country has turned into a collection of pathetic pansies. The bankers are laughing at you every second they strip another dollar out of your wallets. Grow a set of balls and take some action.

Fri, 10/16/2009 - 22:09 | 101604 dnarby
dnarby's picture

Nooo...  It's because things haven't gotten bad enough yet.


Wait until J6P's cable gets turned off and he can't afford a 6P any more.


THEN the shit will hit the fan.

Fri, 10/16/2009 - 16:41 | 101265 Anonymous
Anonymous's picture

fuck you tyler

Fri, 10/16/2009 - 16:41 | 101266 Deficient Market
Deficient Market's picture

Umm aren't they already borrowing more than they're lending? I.e. borrow from the fed window and keep it as reserves? So if they're already at a negative rate of lending, then threatening to cut it, means threatening to make it less negative, so I'm all for it. I say pass FASB 166 and then hold them to their promise to reduce their borrowing from the taxpayer!

Fri, 10/16/2009 - 16:43 | 101268 OldTimer
OldTimer's picture

Am I wrong or is this just Japan in the 90's all over again? Perhaps a heathly outbreak of seppuku will make us all feel better


Fri, 10/16/2009 - 17:53 | 101356 BoeingSpaceliner797
BoeingSpaceliner797's picture

This is Japan in the '90s writ LARGE by several magnitudes, at least.  Japan had an industrial/manufacturing/export base on which to fall back.  The U.S. does not.

Fri, 10/16/2009 - 17:10 | 101276 Miles Kendig
Miles Kendig's picture

What I find noteworthy on point at this time is that: 1. 166/7 got this far at all.  2.  The money centers are not attempting to totally crush 166/7 outright, they are attempting to play for time.  These simple facts speak volumes.

I also happen to agree with Cougar and others.  We are still fighting a so called global war on terrorism in which we have our armed forces in the field suffering loss of life, limb and treasure.  Given these circumstances the banks willingness not only to fail to support their nation during a time of war, but to hold it hostage is unconscionable.  Especially when the idea of direct taxpayer funding of the disabled bankers bonus pools in excess of 50 billion US or what, 300K-70 m per banker each year over two years compared with the bonus pool of a proposed $250.00 per for the disabled veterans over the same period.

Personally, as a 100% disabled war veteran the banks with the willing assistance of my government have made it clear what I and so many have been sacrificed for.

MsCreant, did enough anger get through?

Fri, 10/16/2009 - 17:36 | 101336 nhsadika
nhsadika's picture

I hear you.


Eventually, the international banker mode of operation predatory lending, default, and exercise of control were going to happen here as well.  They took down our own people this time.

Unfortunately, by spending money on so called terrorism wars (through debt) the US became that much poorer (despite our ambitions for Iraqi oil).  Then, in the face of this inflationary force we created the world's greatest spending spree (large mansions for everyone) with more cheap money.   Most people didn't have the productive capacity to buy these things, but with 0% down we fed the bubble.   Debt, default, control.


Now that we are in bubble crash mode.  Surprise who is in control - the lender - the banks.   The banks are having the taxpayer endebt itself more to push money to the lender. 

I am sorry to say, these games have been played around the world by our banks and country and now it is on our own turf.

Fri, 10/16/2009 - 18:38 | 101404 Miles Kendig
Miles Kendig's picture

This is far from the first time this game has been played at home.

Fri, 10/16/2009 - 17:52 | 101351 deadhead
deadhead's picture

What I find noteworthy on point at this time is that: 1. 166/7 got this far at all.  2.  The money centers are not attempting to totally crush 166/7 outright, they are attempting to play for time.

It is interesting to see that 166/7 got this far; the FASB still has some credibility, after the 157 matter earlier this year.

The ABA had lobbied furiously to undo 166/7, so far with no success.

The 166/7 issue can be skinned the other way with regulatory capital forebearance, which is what is going on here vis a vis the FDIC's comment period.

I would make a huge bet that there will be no capital increase required at the onset of Q1 2010.  Instead of taking the appropriate action of writing down and selling off debt, the banks, aided and abetted by the alleged federal regulators, will just keep slogging along with this shit on the balance sheets.


Fri, 10/16/2009 - 18:35 | 101398 Miles Kendig
Miles Kendig's picture

No line...

Fri, 10/16/2009 - 18:02 | 101369 sgt_doom
sgt_doom's picture

Except that they also happen to be financially supporting that so-called global war on terror, as the US gov't has nonstop been funding Pakistan, which has in turn funded the Taliban (and presumably some of that coin makes it into the coffers of al Qaeda).  This has been going on since the Carter Administration, when it was called the mujahedin and just after that administration destroyed the secular government of Afghanistan (good luck in ever getting that back again!).

And with the recent mention of waivers, via the Dept. of Commerce, being granted to sell the latest missile technology (to allow targeting within 3 ft.) to China (shades of the Clinton Administration, which also provided over-the-horizon missile targeting tech to China as well, allowing them to get a 25-year jump to equal the USA), it is obvious that the long tradition of America financially aiding their present and future (???) enemies is well in place.

Fri, 10/16/2009 - 20:38 | 101400 Miles Kendig
Miles Kendig's picture

That is a very deep well indeed... That spans decades

Fri, 10/16/2009 - 20:59 | 101527 MsCreant
MsCreant's picture

"MsCreant, did enough anger get through?"

I don't honestly know and I don't want to bullshit you.

First I thought of this:

Then I thought of the woodstock version (which I could not find) of this:

I don't think any of us are angry enough. Even those of us bitching here.



Fri, 10/16/2009 - 16:50 | 101284 Anonymous
Anonymous's picture

This is another piece of the puzzle indicative of why any viewpoint espousing inflation as the prevailing global trend is utterly illusory. These existing losses and malinvestments, in addition to losses building currently, will absolutely devour those excess reserves that many are convinced will fuel further inflation. Increase Fed Funds Rate to mitigate inflation? Perform Reverse Repos to drain excess money supply? Such talk is all bovine scatology. These holes will need to be filled (regardless of all smokescreen attempts by financial popinjays), and all that liquidity that has in recent months flowed into various assets will soon be called upon to flow into the holes. That means a rally in the dollar, a flattening yield curve, and the next leg down in equities.

Fri, 10/16/2009 - 22:12 | 101607 dnarby
dnarby's picture

Timing is everthing.

...What time is it exactly?

Fri, 10/16/2009 - 17:11 | 101304 Anonymous
Anonymous's picture

Treason and support for your country in "wartime?" Is that all you guys can come up with? Honestly, what dimension do you live in? Are you that clueless?

Fri, 10/16/2009 - 17:12 | 101307 zanahorias
zanahorias's picture

this is incredible.  is today aprils fool???

is this a hidden camera joke...

this shit smells funny

"Fear leads to anger, anger leads to hate, hate leads to suffering." but let me five minutes with those banksters

PD. Fed could simply charge negative interest to keep excess reserves, like swedish are doing now.

f*ck*ng corruption

Fri, 10/16/2009 - 17:43 | 101345 Anonymous
Anonymous's picture

Maybe Bin Laden should have just claimed to cause "systemic risk" to get what he wanted...

Fri, 10/16/2009 - 18:05 | 101371 aswipe
aswipe's picture

Git a rope.

Fri, 10/16/2009 - 18:07 | 101377 Anonymous
Anonymous's picture

I wish you guys would process the information correctly the only one I see that gets it sgt_doom in his post. Its not politics or political leaders . The US government has been made a branch of Goldman and the banks... not the other way around. So give up the Obama this, congress that, and get on track . Saying the government is at fault is like saying the soldier is at fault for accepting the bullet that was fired into him. Right Miles? They dont allow it to happen, they like we cant rise above the plan set forth by the ruling class. Money rules, not politicians.

Fri, 10/16/2009 - 20:05 | 101490 Miles Kendig
Miles Kendig's picture

Politicians cannot even manage their own office staff or information flow without guidance.  However, there are ways to rise above and I rather suspect that the fed and a few folks in and out of the money centers have figured it out as well or else they would not be acting as they are.  Every structure cannot stand without its keystone.  Why bash the ramparts to no end when the means to breach the obstacles are within such relatively easy reach?  Agree Anon?


Fri, 10/16/2009 - 21:12 | 101540 Anonymous
Anonymous's picture

Because bashing is do-able? Im not really sure what you mean there Miles. From my perspective that FED way out you speak of was a Ready, Shoot, Aim ploy that doesn't have to work out for anyone but the architects. Wasn't the Fed taken into the back room by Paulson and told of the coming apocalypse if they didn't get their way so to speak? Now the fed is complicitous?

Fri, 10/16/2009 - 22:24 | 101619 Miles Kendig
Miles Kendig's picture

From my perspective that FED way out you speak of was a Ready, Shoot, Aim ploy that doesn't have to work out for anyone but the architects

What I am addressing can hardly be considered a FED way out.  Roflmao.  However, I could agree fully that the structure is working precisely as designed and operated.  I have yet to find a man made structure that can withstand the test of time and the other forces of the universe unscathed. 

Fri, 10/16/2009 - 18:37 | 101401 californiagirl
californiagirl's picture

What lending?  Since September of last year, banks have deposited almost $1 Trillion at the FED, which Bernanke spent on MBS garbage and propping up the Treasury auctions.  That is $1 Trillion not available for lending.  So who is the real culprit?

Sat, 10/17/2009 - 11:10 | 101975 Anonymous
Anonymous's picture

I gathe that trillion deposited WAS in the form of MBS garbage

Fri, 10/16/2009 - 18:44 | 101410 Fritz
Fritz's picture

Come on people...have you no sympathy for the banks?

If they reveal how insolvent they are, their boards might actually wake up and take notice.

Think of all the wall street prop desk guys that may not get an egregious bonus if that were to happen.


Fri, 10/16/2009 - 19:03 | 101427 Anonymous
Anonymous's picture

Where was everybody when we gave away
our manufacturing base to increase profits so
we could drive up stock prices. This country
has got a huge hard on for something for nothing
whether it's the stock market or flippin houses or
exploiting third world labour and charging the same
amount as if it was built here. The problem is when
all these efficiencies were achieved nobody has
a job left to buy this crap so blame the banks for their
greed then go look in the mirror for the next person
to blame.

Fri, 10/16/2009 - 19:12 | 101440 E pluribus unum
E pluribus unum's picture

Nationalize these motherfuckers!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Fri, 10/16/2009 - 19:31 | 101454 Bear
Bear's picture

The TG/BHO runs the banks ... what's the difference?

Fri, 10/16/2009 - 19:41 | 101465 Anonymous
Anonymous's picture


Get rid of these predatory mother fuckers. Honest
to god what the fuck will it take to get people
pissed enough.

Fri, 10/16/2009 - 19:45 | 101473 lizzy36
lizzy36's picture

they were nationalized.  what do u think tbtf means?

of course it being Obama's America (u know where the middle class matters - hahahaha) they privatized the gains and socialized the losses.

Fri, 10/16/2009 - 19:38 | 101460 Anonymous
Anonymous's picture

I don't think anyone here fully understands the impact of 166/167. The banks will ultimately shuffle entities around to make it work - both BOA and Wachovia did this within the last 24 months as they acquired Trustees on some of their securitizations. Maybe we see some servicing rights, or even servicing operations, spun off. The specials on CMBS deals will just report GAAP numbers (even though they may only have an economic interest in the first loss piece, these changes will likely cause them to fully consolidate the entire deals), and then report reality in a few paragraphs below. The specials aren't banks. The residual piece holders, guys like Nissan and Ford, will likely sell them off at fire sale prices if they get sucked in - the exact opposite effect of what most folks think is best for the securitization machine. Hedge funds and the like, could care less about GAAP numbers. This new rule is only going to hurt groups such as publicly traded investors (i.e. Insurance Cos) that have to stick to GAAP that are forced to sell off their securitized product portfolios into a market full of supply and no demand. Just read pages 8 - 12 of the referenced in TD's story above - the proposals are idiotics and create a lot of problems while solving none.

-Dark Space

Sat, 10/17/2009 - 07:32 | 101893 InExile
InExile's picture

Can you explain the acquisition of trustees? How does that help with respect to 166/167?

Sat, 10/17/2009 - 10:30 | 101959 Anonymous
Anonymous's picture

When BOA bought LaSalle, for instance, there were a number of securitizations where LaSalle was Trustee, and BOA was, in some cases, all of the other parties (originator, issuer, servicer, etc.) - they assigned those trustee rights to Wells Fargo in nearly every case. Wells went through a similar process when they got into bed with Wachovia.

Fri, 10/16/2009 - 19:43 | 101470 Anonymous
Anonymous's picture

Did you ever notice that the ABA - American Banker's Association - shares the same acronym as the other ABA - American Bar Association?

Bankers and lawyers in bed together. . . . who would've thought?

Fri, 10/16/2009 - 19:44 | 101472 Bear
Bear's picture

My friends let me provide the opposing view:

Not being an accountant I don't know but I thought that balance sheets are provided to banking institutions when seeking a loan. And on these balance sheets one itemizes one's assets and liabilities ... is this not correct?

bank Balance Sheets .. the true meaning of BS


Fri, 10/16/2009 - 21:14 | 101543 MsCreant
MsCreant's picture

All the so called first world nations are up to the same shit going, "Yeah, but look at them," as they point at the other countries.

Here is the real problem. It's easy. There is not a sufficient number of us mature enough at one time and place to do what is needed.

Childlike or damaged minds steal. Childlike or damaged minds stay in denial about their problems, hoping they will go away. These same minds are the ones that will keep doing the samething over and over even when you know, in the big picture, none of it works (blowing bubbles, depressions hell, even wars and revolutions). Children act from a hurt and insecure place, not thinking about how their actions impact others, because they cannot see that big a picture and they are not connected.

I guess I should qualify all that and say unhealthy children.

We need to take it away from them because they are children. Not because we want to hang them (though I often do).

The problem is there are more children than adults.

The only way to do this is to stop playing with them.

Give them nothing.

Because there are not enough adults who can see this and mobilize, we are doomed to repeat it all. We just caught this part of the cycle with this part of our lives.

If each time we do this, the memory is better, and the emotional and spiritual maturity is further along in a greater number of people, maybe those folks stand a chance.

Just rambling here.

Fri, 10/16/2009 - 22:08 | 101595 Miles Kendig
Miles Kendig's picture

Hardly.  Some games are impossible to play by ones self. There are alternatives as you demonstrate.

Glad to see you don't serve up fluffernutters.


Fri, 10/16/2009 - 22:36 | 101637 dnarby
dnarby's picture

Yeah?  Then how 'bout this:  All this is merely the collective expectations of billions of people culminating in the manner that best meets those collective expectations.

We expect politicians to be corrupt and feckless:  They act corrupt and feckless.

We expect bankers and Wall Streeters to be greedy and reckless:  They act greedy and reckless.

We expect people to continue behavior far past the point it's obvious it isn't working:  They continue.

We expect unworkable financial/monetary systems to eventually collapse under their own weight:  They collapse.

We expect people to sit on their ass and take it until things get so bad they can't:  They do.

...Until they don't.

And in the long run, everybody dies, gains the ultimate bird's eye view, and really, truly understands what Shakespeare meant when he penned the lines:

"All the world's a stage,
And all the men and women merely players:
They have their exits and their entrances;
And one man in his time plays many parts,
His acts being seven ages. At first the infant,
Mewling and puking in the nurse's arms.
And then the whining school-boy, with his satchel
And shining morning face, creeping like snail
Unwillingly to school. And then the lover,
Sighing like furnace, with a woeful ballad
Made to his mistress' eyebrow. Then a soldier,
Full of strange oaths and bearded like the pard,
Jealous in honour, sudden and quick in quarrel,
Seeking the bubble reputation
Even in the cannon's mouth. And then the justice,
In fair round belly with good capon lined,
With eyes severe and beard of formal cut,
Full of wise saws and modern instances;
And so he plays his part. The sixth age shifts
Into the lean and slipper'd pantaloon,
With spectacles on nose and pouch on side,
His youthful hose, well saved, a world too wide
For his shrunk shank; and his big manly voice,
Turning again toward childish treble, pipes
And whistles in his sound. Last scene of all,
That ends this strange eventful history,
Is second childishness and mere oblivion,
Sans teeth, sans eyes, sans taste, sans everything."


"...Life's but a walking shadow, a poor player,
That struts and frets his hour upon the stage,
And then is heard no more. It is a tale
Told by an idiot, full of sound and fury,
Signifying nothing."

Because when you get right down to it? 

Life has absolutely no meaning or purpose...  Except what YOU choose to give to it.

And now that you know that...  What do you do with it?

Sat, 10/17/2009 - 01:13 | 101781 Miles Kendig
Miles Kendig's picture

Same thing I did today.

Have a wonderful life... In the land of the living

Sat, 10/17/2009 - 01:15 | 101790 MsCreant
MsCreant's picture

You have this one honed, yes?

Sat, 10/17/2009 - 10:30 | 101958 Miles Kendig
Miles Kendig's picture


Sure beats the heck out of sitting in a basement drinking a banana - broccoli shake, singing....

This is how we shop for groceries - Edgar Friendly and now Miles Kendig

Fri, 10/16/2009 - 21:51 | 101581 Anonymous
Anonymous's picture

This corruption knows NO BOUNDS.

Call the Whitehouse every day until they understand we do not want the criminal banks making and breaking the laws of this nation.

What happened to the rule of law in this nation? Why are in inmates brazenly running the asylym?

Fri, 10/16/2009 - 23:45 | 101694 ZerOhead
ZerOhead's picture

Dude you just killed my buzz...

Sat, 10/17/2009 - 07:29 | 101890 InExile
InExile's picture

The "stop lending" discussion is off the mark.  Banks can earn by buying securities. This is what they are doing.  We should question the wisdom of banks lending during a balance sheet driven recession.  Regarding the off balance sheet securitizations, consider the impact ofQ3's cash build at banks that have just reported relative to RWAs and capital ratios.

Sat, 10/17/2009 - 10:47 | 101967 Rainman
Rainman's picture

Since SEC is the supervising fed entity for FASB, this will be a signifigant test for Mary. If FASB caves in to the pressure from ABA for a 3 year conversion, it will be with her thumbs up. This tarbaby will stick to her no matter which way it goes.

FASB, on the other hand, believes the mark-to-myth shelf life has long expired. Too many are paying attention to the fraudulent voodoo accounting by the Banksters. Especially ZH and Denninger ( who is like a rabid pit bull on this issue).

Either way, it's nut cuttin' time.





Sat, 10/17/2009 - 18:54 | 102280 deadhead
deadhead's picture

Karl's article on this today is a must read for anyone intersted in this matter. I'm delighted that he pointed out the fact that FASB 166/167 has already been delayed since November 2008.

Keep at it Karl and thank you!

Sat, 10/17/2009 - 12:26 | 102039 bullchit
bullchit's picture

Not sure where to put this.

It's a response to:

here's one Brit. who gets it.

"Did you actually write this with a straight face?? We shouldn't even be talking about a "recovery" especially as the "Great Gordo" eliminate3d "Boom and Bust". The recovery if it happens will take YEARS and millions of us will be clearing up Labour's crap and paying for it in raised taxes, trashed pensions, appalling savings rates and the inevitable inflation caused by raised import costs. 


Just because Google has made a lot of money out of nothing and the Dow is up does not reflect the fact that we are producing nothing but hollow promises, hedge funds and moonbeams. 

For God's sakes, the whole country has been conned and fleeced by that charlatan Blair and always in the background like a bad smell, moral compass swivelling wildly, Gordon Brown, the most useless, dangerous and dysfunctional man ever to allowed near the levers of power. Meanwhile, in the background, the unelected and odious Mandelson is pulling the strings for the unaccountable and contemptuous-of-democracy, EU illuminati. 

Between Brown and the bunch of jealous, purse-lipped student union Trots such as Harman, Straw, Hain, Balls, Cooper, they have achieved their aim, to destroy what they hate most in this world, the United Kingdom, and ENGLAND i nparticular, as it stood in the way of their vile aqnd distorted "international". 

Everything that "New" Fascist Labour has touched has been corrupted in its image. The country is no longer a free democracy, it is a Puritanical CCTV, Spook, Jobsworth and SNEAK infested, open prison. 

If you seriopusly think that there is any REAL economic recovery in the air then you are either a paid up member of "New" Fascist Labour, angling for a nice stipend on a Quango, or the peerage carrot has been dangled. 

Sorry to appear harsh, but I have watched as my savings are rendered worthless, my pension fund wiped out, prices soaring, petrol going statospheric, taxes crippling and that is the economic side. 

The NHS despite BILLIONS hosed over it is failing those who need it most. We are suffocating in crony packed Quangos. Schools are little more than propaganda spewing daytime Holding Penitentiaries. We are being "equalized" into a terrorised and disarmed peasantry, thrown a few "benefits" while the likes of the public-schooled Harriet Harman et al, are considerably more "equal" than us. 

As a once-free British Citizen, I can be criminalized for putting the wrong rubbish, MY rubbish, in the "wrong" bin, because we are in thrall to the enviro-lunatics. There are thousands of new "offences", penalties, traps, catch-alls and "tough new laws" with our DNA, fingerprints and data up for grabs from every State agency that fancies its chances. 

Business and manufacturing in particular has been all but regulated out of existence with so many "rights" and "benefits" for employees that companies have decided that it isn't worth the carrot and either gone elsewhere or shut up shop. 

My children have jobs but no thanks whatsoever to the nanny State and the appalling curriculum-lite "education" system. They did it themselves, no "benefits" and no strings-laden "handouts". My wife and I taught them what we were taught, reading, arithmetic, diction, common sense, manners and DISCIPLINE, which gave them the edge. 

Please do not talk of recovery, it isn't possible while this disgusting Government Of All the TRAITORS, headed by the cowardly and dysfunctional Brown, is in place. 

For all of us a GENERAL ELECTION cannot come quickly enough. How much more damage, how many more "landmines" in Brown's spiteful scorched earth policy before we can get rid of them like the political toxic waste that they are? 

But please, do not talk of "recovery" until the necessary "political correction" has been made. Anything else is a false dawn, spin and lies. 

As for that Election, do not think that by staying at home in "disgust" that this will work. What you will get is another term of "New" Fascist. Sorry folks, but there is only ONE option and that is a CONSERVATIVE government, who once again will have to clear up the mess and take the flak while the dregs of "New" fascist snipe from the safety of opposition. 

And you can forget the shapeshifting Europhiles of the LibDums. While tempting that the smaller parties may be, all that will happen is that the vote will be split allowing "New" fascist Labour a possible shoo-in. It is time to wake up to the fact that socialism that has failed everywhere else, has failed and will always fail and must be finally destroyed and buried in the toxic landfill of history. 

Sorry about the long rant, but this ill-informed "reportage" is both dillusional and dangerous, especially as there is no hope that the current corrupt junta are capable of running the UK and never were. Regards.-


Sat, 10/17/2009 - 20:15 | 102343 Anonymous
Anonymous's picture

Starfish, Fight Club, and deep-fried calamari. Here it is again, stripped down:

Do NOT follow this link or you will be banned from the site!