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FDIC’s Bair: "Bury the Losses"
Sheila Bair has turned a corner in her support of the bankers. On the
critical issue of accounting clarity she made these remarks today to a
bunch of CPA’s. I hear she got a standing ovation from that audience.
Her words:
Fair Value AccountingAnother
ongoing regulatory process is FASB's proposal to substantially revise
the accounting standards for financial instruments. Under the proposed
rule, banks would be required to measure substantially all of their financial instruments at fair value on the balance sheet.While
we understand that the objective of the rule is to make financial
statements more transparent, we believe that its effect could be to
undermine financial stability by making bank performance more
procyclical. In short, we do not believe that a bank – whose business strategy is to hold loans and deposit liabilities for the long term – should be required to measure them at fair value on the balance sheet.
70% of all Americans own some stocks. It is hard to avoid the financials
if you’re in a fund, so the consumer’s new champion, Elizabeth Warren,
should take up the issue of clarity on bank financial statements. That
would be a cat-fight I would like to see.
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So when I fill out my mortgage application, I will not use "fair market value" for my asset statement. I will decide what my house is worth and demand a loan on that basis.
Sounds familiar, doesn't it? Liar Loans is the term I think.
This should be grounds for termination, but I do not expect this to occur. It does give us some insight about what to expect and who to believe though ... :-(
sschu
Wait a minute, when the strategy fails to comport to reality, change reality? Fuck, now those are nice terms!!! Wish I could have those terms.
When will this end!!
Those pics are Boner city.
Americans deserve to be ass-rammed with the crooks bill and be washed, rinsed, and repeated all over again! Enjoy it, as everyone accepts whatever from the criminals and does nothing.
Well, I think my Toyota Corolla is worth 10 million dollars. Can I claim that on my balance sheet?
You can if you open your own bank.
Then the FED will buy it for $11 million.
Now that's some unintended acceleration! Sticky gas pedal?
Mark-to-Make Believe, everyone's doing it.
But....but...Warren says she's doing a heckuva job...
Does anyone believe that the actual performance of the banking sector can be anything but pro-cyclical?
Z.E. is needed to get things done right.
Here is the kind of stories that need to happen ... every day.
Now let’s hire more people and go after the big boys.
http://online.wsj.com/article/SB10001424052748703628204575619000289073686.html?
U.S. Sets 50 Bank Probes
The Federal Deposit Insurance Corp. is conducting about 50 criminal investigations of former executives, directors and employees at U.S. banks that have failed since the start of the financial crisis.
The agency responsible for dealing with bank failures is stepping up its effort to punish alleged recklessness, fraud and other criminal behavior, as U.S. officials did in the wake of the savings-and-loan crisis a generation ago. More than 300 banks and savings institutions have failed since the start of 2008, but just a few have led to criminal charges being filed against bank officials.
In an interview, Fred W. Gibson, deputy inspector general at the FDIC, which works with the Federal Bureau of Investigation to investigate crime at financial institutions, said the probes involve failed banks of all sizes in cities across the U.S. The FDIC is also ramping up civil claims to recover money from former bankers at busted lenders. He declined to identify any of the people or banks under investigation.
So far, the FDIC has filed just two civil lawsuits related to recent failures. The agency is seeking $300 million in damages from four former executives of IndyMac Bancorp, the Pasadena, Calif., lender that sank in 2008. Eleven former directors and officers of Heritage Community Bank are being pursued for $20 million in damages related to the Glenwood, Ill., bank's collapse last year.
The few criminal prosecutions of failed banks so far include Integrity Bank, which opened in Alpharetta, Ga., in 2000 and was seized by regulators in 2008. In July, two former executives pleaded guilty to fraud-related charges.
Prosecutors alleged that the executives helped the bank's biggest customer use a construction loan to buy a private island in the Bahamas.
Yeah, right...
Angelo Mozilo, Countrywide Ex-CEO, Settles With SEC For $67.5MHe ought to be somebody's bitch by this time, with a lifetime left on the sentence.
Lizzy??? Oh! The other Lizzy nvm
I am extremely dimwitted, but thanks to ZH and buffets letter today, I am finally figuring out that the government is societies' "nurturer" and the banks are societies' disciplinarian in a Brady Bunch family. We need to abandon the clearly debunked fields of political science, sociology, and especially business, finance, economics and accounting. The only degrees in the liberal arts and sciences that should remain are those related to parenting & childcare, and education of such teachers.
This should help reduce our student loan burdens. If your LAS degree it is no longer valid/accredited you should not have to pay it back.
I think Elizabeth Warren's office works out of the Federal Reserve. Not sure how that's a help.
Please tell me this is not true!
http://mandelman.ml-implode.com/2010/11/well-would-you-look-at-that-eliz...
I think I'm gonna puke.
This may be relevant....
http://dailyreckoning.com/bank-failures-in-slow-motion-part-ii/
I'm so glad I've pulled the plug on my 401ks....
we do not believe that a bank – whose business strategy is to hold loans and deposit liabilities for the long term – should be required to measure them at fair value on the balance sheet.
So, why not just eliminate the capital requirements altogether? Reserve requirements are basically 0, now, as it is. And since when have banks been holding loans for term? Not since before the 1980s.
Look, she's a lazy fuck. She could have taken all of those insovent banks and liquidated them, but she said that that was too much work. Yeah, any work is too much work for a government employee.
When will this fucking nightmare end???
Maybe she doesn't have the people or money to accomplish the mandate.
And maybe it will fix itself if given enough time, so she wishes Warren to please not rock the boat.
That thinking is everywhere
the bankers r ur government...
nothing short of violent oppostion to the ongoing financial rape of the citizenry will end their rapacity...
ride, die, or continue being a slave....
there are other ways to change the system without violence and/or political action.
this would be a good start:
http://www.youtube.com/watch?v=-Uop5R7E314
Can Suze play, too? I love a good threesome.
http://www.wcvarones.com/2009/03/lesbotism-at-fdic.html
"Bury the losses."
More like "Night of the Living Losses."
given that so many of us keep our mouths shut so as to leave others wondering just how stupid we are, isn't it flat-out amazing how much money she makes simply by speaking out and removing any doubt?
BURY THE BANKERS!
Sorry Fox, there is no truth out there.
The cat fight will never happen. Business as usual.
/:
this seems worse than usual. and so bloody blatant. where is the public outrage? has this been reported at all?
why limit the use of this masking to the TBTF and other masters? (sarc) soon we'll allow investment companies to carry their positions at any price, based on a statement that it is a long term holding. Let the PONZI conitnue...
Frankly, I don't see how this is any more blatant than any POMO ever done and those have been going on for a while.
Where's the outrage? See all the new faces around here? There's the outrage.
Let's take a geographical poll and see how many "fly-over" Americans are now on this board or people in other countries who really want to understand what kind of shenanigans these Americans are up to. Now, hopefully, the stereotypes can be set aside, as they can plainly see that we have been duped just as they have. Two years ago, they heard none of this because they were far insulated from Washington, D.C. and Wall Street.
Now, protestors on YouTube and the general vibe of a redness in the ears. It's coming slowly to a boil. You don't have to watch the pot but it is going to be rolling soon enough.
Orly
South Texas
the good news is that a lot of the new faces are pretty durned sharp - definitely welcome company.
interesting observation, as always.
(let's just keep the attention on that silly tea-bagger thing while the real revolution quietly mobilizes in the shadows)
cheers
I'm a NY CPA and it disgust me to see the accounting industry fold on this issue. The CPA industry was created to give creditors and outside owners confidence in the numbers reported by management. It has now become an industry giving banks and congress confidence that their fraud and mismanagement will never be seen.
And I'm supposed to do 40 hours of continuing education every year to keep this fast becoming worthless title of CPA.
What a crime.
Thanks for your inside scoop (and we root for you). I'd read, maybe a year ago, CPA assoc. (or members?) was gonna go "on strike" in a sense - simply refuse to sign off on mark-to-fantasy, because it would expose them to liability or legal jeopardy. Turned out to be just another rumor?
Apparently now the importance of public confidence is no longer a relevant issue.
No credible confidence built of actual transparency and clarity or facts.
They just conspire to "create" enough confidence for Americans to CONSUME throw-away items with abandon again. Crank up the Enola Gay! Bomb bomb bomb for today.
Didn't it cease being relevant a long, long time ago? Congressional approval is at what all-time low these days?
Less than a quarter of Americans even believe our government has the consent of the governed. Fucking mind-boggling! Of course public confidence (and opinion for that matter) is entirely irrelevant.
ETA: http://www.lewrockwell.com/pr/rasmussen-23-percent-govt-has-consent.html
Looks like GAAP and CPA are now CRAP.
Complicit Regional Asset Protection
Pretty soon the CPA moniker will be changed to CPO....COUNT PROFITS ONLY.
Did I just read that right? The head of the FDIC doesn't think they should account for loans at fair value? Uncle warren says its okay that Uncle Sam "Stretched Legal Boundries?"
When do we get the guns out.... someone please let me know.
The guns come out when the grocery store shelves are empty and the electricity gets cut, and not a moment before. And by then, of course, it's too late. The average American doesn't even know what the fuck FDIC stands for, who Sheila Bair is, or what fair-market asset valuation means. Even worse, they don't give a shit. Keep the food coming, the lights on, and flickering images on the television and TPTB are golden. 1984? Shit, we'll be begging for every bit of it.
Exactly!
+1000
We told a co worker that FDIC is finished and they looked at us like we are nuts. That was two years ago.
I am happy our Credit Union has thier own access to the fed wire to move funds here and there.
Stocks? All sold and gone years ago. 401k? Forget it a few hundred dollars reduced by a recent employer vested change that takes 6 years for 100% instead of just two.
Guns, yes ammo? yes. Food ready, fuel some.
When they run on the FDIC banks on that judgement day, we only stay home out of the way.
I can't help but wonder the same thing. It appears nobody wants to go first--like initiating applause during a speech or standing for an ovation.
So: Go first.
I think it's a matter of economic convenience. There are lots of people who would jump up and raise all kinds of hell!
So long as they didn't have to stray too far the fridge and the boob-toob and the subjects of their angst are willing to show up at their house between 8:30 and 9:00am Saturday (The Kids have soccer at 9:30).
To visit these folks in their lair, one would have to use up sick days and rack up hotel fees!
Serously, I can assure you that the Politicians in Washington oscillate between looking over their shoulders and shitting their pants these days.
If your car backfires while driving by these cotton topped crook-monkeys, you will likely be thrown in jail for causing them a major "code brown".
There has been a parabolic increase in threats against them. So much so that the Secret Service no longer takes on any roles outside of protective services. All the counterfieting ops and any personell that couldn't run-n-gun were turned over to the Treasury.
Joe Stack already went first and all Americans did was paint him as being from the "other side" of the red/blue divide, depending on whichever side they personally claimed as their own.
we go together on a three count
one
two.......
Now there is an overlooked resource. If anyone ever asks again what he/she can do, you have directed us to the place to begin.
Why should any government have this much power:
http://www.effectivestates.org/images/Optimal%20Scenario%201-185.jpg