Scramble For Yield Paradoxically Forces Citi To Go Back To Mark-To-Market Accounting

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Mon, 04/18/2011 - 19:55 | 1182218 Robslob
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Gold and silver are in a bubble right?

I mean...right?

Mon, 04/18/2011 - 19:56 | 1182223 Id fight Gandhi
Id fight Gandhi's picture


Mon, 04/18/2011 - 19:57 | 1182225 knukles
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Heads they win tails we loose.

Mark to market in increasing asset price space (good for boni.)
Mark to cost/myth/maybe/Idont'likeyourprice assholemine'sbetter and bythewaywe'refuckedandneedabailout in falling price space (public pays.)

Social justice.  For the money baggers.

Mon, 04/18/2011 - 20:01 | 1182237 RobotTrader
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Citi was actually green most of the day.

Mon, 04/18/2011 - 20:14 | 1182268 Id fight Gandhi
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Gangrene. Gonna be drop off in volume when this turd reverse splits. Then it'll tank like a Mofo.

Mon, 04/18/2011 - 20:22 | 1182308 Hephasteus
Hephasteus's picture

Ya. If it was red it would mean citi had lost self esteem and began a program of self flagulation.

It still can't get a date with a real live human outside of it's corporation.

Mon, 04/18/2011 - 20:02 | 1182238 slewie the pi-rat
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any liquidation of zombie "capital" is applauded!

Mon, 04/18/2011 - 20:04 | 1182239 AldousHuxley
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When things go north, market to market

When things go south, market to fantasy


Is this the new FASB put?

Mon, 04/18/2011 - 21:59 | 1182549 TheFourthStooge-ing
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Since what remains of the "market" has degenerated into little more than a high frequency computer-driven game of charades, the new accounting is actually "mark to the arbitrary and capricious rationalization du jour", also known as "mark to fuck it".


FASB = Fuck America, Serve Bankers


Mon, 04/18/2011 - 20:08 | 1182247 Strategery
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Another example of why bankers shouldn't be put in charge of watching bankers.

Mon, 04/18/2011 - 20:08 | 1182259 CrownThomas
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Nice to see they can do that as they see fit. Games are almost up, they dumped all their reserves & still only hit $.10 / EPS.

As soon as market tanks Bernank will purchase them all anyway, what do they care.

Mon, 04/18/2011 - 20:15 | 1182282 Id fight Gandhi
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Gonna rev split drop back into the 20s. Bravo.

Mon, 04/18/2011 - 20:16 | 1182286 MsCreant
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The dollar is a toxic asset. Mark your toxins in toxin. The shell game is leaving streaks on the table.


Mon, 04/18/2011 - 20:48 | 1182368 Sisyphus
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Mon, 04/18/2011 - 20:52 | 1182377 MsCreant
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My house was destroyed by a tree in a storm. I have been exceedingly busy with work, going through debris, insurance, etc. Everyone is okay, but I am Homeless right now. My preps have been amusing...

Mon, 04/18/2011 - 21:06 | 1182412 Sisyphus
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Sorry to hear that, MsCreant; I wish the best for you and yours. I have been here a looooooonng time, read every post, don't comment much, but do look forward to comments from some of the old timers. Most have gone or have turned into lurkers, so always notice when one of the old timers go "missing".


Best of luck. After reading you for a long time, I am sure what you are going through, as difficult and stressful it is, will bring out the best in you. Take care!

Tue, 04/19/2011 - 06:38 | 1183193 Hephasteus
Hephasteus's picture

Oh man. I'm sooo sorry MsCreant. I still don't get how that works. Houses are made of trees. Yet trees can destroy houses. It's like playing rock paper scissors and unprocesses scissors beat processed scissors.

So what are you going to do with the insurance check? Are you ready to step up to the full bomb shelter?

Mon, 04/18/2011 - 20:15 | 1182291 Rusty Shorts
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  ram it.

"The rare Godzilla free day"


Mon, 04/18/2011 - 20:45 | 1182350 tellsometruth
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Risk appetite is unreal when you really aren't on the hook

Mon, 04/18/2011 - 21:20 | 1182453 Catullus
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Over the line!!!! Mark it zero, dude.

Mon, 04/18/2011 - 21:39 | 1182503 Bob
Bob's picture

Vibrating like a superstring!  Beautiful, Tyler.  Thanks for illuminating their ongoing machinations.  What a trip. 

Mon, 04/18/2011 - 21:59 | 1182554 Freewheelin Franklin
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So long as the purchasing power of money is destroyed faster than the purchasing power of assets, an illusion of asset inflation is created. 

Tue, 04/19/2011 - 00:42 | 1182939 Bansters-in-my-...
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Thanks Tyler.

Some more ammo for the mind.

Tue, 04/19/2011 - 01:15 | 1182996 Slayer
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They may as hell do what they want rules don't apply to them anyhow.

Tue, 04/19/2011 - 02:55 | 1183118 ZeroPower
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Maybe i missed it, but 

 accounting rules require financial groups seeking to move assets back to their “trading” book to show that the facts around their initial decision had significantly changed


Any ideas on what Citi could make up with respect to this? Do they simply argue the assets should not have been on the HTM side in the first place? No harm no foul?

Tue, 04/19/2011 - 09:47 | 1183562 Rikki-Tikki-Tavi
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Basel III's higher risk weightings for the assets in question according to the article (link above)

Tue, 04/19/2011 - 05:00 | 1183160 Urban Redneck
Urban Redneck's picture

That they actually have to sit down and do the math as to whether the current cash value of their crap exceeds the pitiful Basel III capital requirements associated with keeping it on a bank or BHC balance sheet tells you all you need to know.

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