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

Tyler Durden's picture

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Robslob's picture

Gold and silver are in a bubble right?

I mean...right?

knukles's picture

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.

RobotTrader's picture

Citi was actually green most of the day.

Id fight Gandhi's picture

Gangrene. Gonna be drop off in volume when this turd reverse splits. Then it'll tank like a Mofo.

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.

slewie the pi-rat's picture

any liquidation of zombie "capital" is applauded!

AldousHuxley's picture

When things go north, market to market

When things go south, market to fantasy


Is this the new FASB put?

TheFourthStooge-ing's picture

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


Strategery's picture

Another example of why bankers shouldn't be put in charge of watching bankers.

CrownThomas's picture

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.

Id fight Gandhi's picture

Gonna rev split drop back into the 20s. Bravo.

MsCreant's picture

The dollar is a toxic asset. Mark your toxins in toxin. The shell game is leaving streaks on the table.


MsCreant's picture

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...

Sisyphus's picture

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!

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?

tellsometruth's picture

Risk appetite is unreal when you really aren't on the hook

Catullus's picture

Over the line!!!! Mark it zero, dude.

Bob's picture

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

Freewheelin Franklin's picture

So long as the purchasing power of money is destroyed faster than the purchasing power of assets, an illusion of asset inflation is created. 

Bansters-in-my- feces's picture

Thanks Tyler.

Some more ammo for the mind.

Slayer's picture

They may as hell do what they want rules don't apply to them anyhow.

ZeroPower's picture

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?

Rikki-Tikki-Tavi's picture

Basel III's higher risk weightings for the assets in question according to the article (link above)

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.