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SEC To Propose Rule Making End Of Quarter Window Dressing For Banks Just That Little More Difficult
Developing news that the SEC is proposing a rule that will make EOQ window dressing, along the lines of the Repo 105 transactions that made so many headlines yet resulted in absolutely no criminal convictions, more difficult. We will bring you more some time in 2394 when this proposal actually becomes enforced, but in the meantime here is our chart that shows just how much of a pervasive phenomenon this is among the Primary Dealer community.
Readers can find out more about this here: End Of Quarter Primary Dealer Asset Window Dressing Games Continue. We will update this chart in the first week of October when the Q3 window dreassing game is complete. We expect another 30 billion up and down swing as banks "fix" their capitalization ratios just in time for their 10-Q filings.
More from Bloomberg:
U.S. regulators may make it harder for companies to mask debt after Lehman Brothers Holdings Inc. was accused of misleading investors by temporarily moving assets off its books.
U.S. Securities and Exchange Commission members will vote today on rules that would expand what firms must disclose about short-term borrowing arrangements. Under the proposed rules, banks would have to tell shareholders the maximum amount of debt they had each quarter and the average amount of debt.
The rules target what SEC Chairman Mary Schapiro has described as “window dressing,” in which companies use accounting maneuvers to reduce borrowing at the end of quarters when they publicly report debt levels to investors.
Lehman filed the biggest bankruptcy in history on Sept. 15, 2008, exacerbating a global credit crisis following the collapse of the U.S. mortgage market. Bankruptcy examiner Anton Valukas wrote in a March report that Lehman executives tried to hide the New York-based investment bank’s true financial picture by moving $50 billion of assets off its books and accounting for the transactions as sales.
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A non-event. Isn't it an annual note now and they may change it to a quarterly note?
Long live zombie banks!!!
It won't pass before the government spins off its Citi stake... that's for sure.
Now that James Brown of Merrill Lynch (yes James Brown) is off the hook for helping Enron barge off its balance sheet, don't expect much action here. Financial statement massage is as American as apple pie. Who goes to jail for apple pie (besides Martha Stewart)?
But it is still AAA-OK to keep Fannie, Freddie, and FHA(?) off the USA's books?
I just found the most bizarre piece of information I have seen for a while.
The Federal Reserve Bank of Dallas teaches you how to Build Wealth!
OK, I know you may think this is irony, but wait, it gets better..
http://www.dallasfed.org/ca/wealth/index.cfm
Open the Print Version. On page 1 we can already see where this is heading. There are three components to build wealth acording to FRB:
- Budget to save
- Save & Invest
- Control Debt (notice the freemasonry symbol with the Eye, cool, or not a coincidence?)
Introductory wise quotation from Chairman Ben, nice, page 2.
The first paragraph manages to use the word "debt" two times. Is this just a coincidence?
Look at page 5, "My balance sheet". Note how many liabilities they seem to have! Home Mortgage, home equity loan, car loan, etc., presented as a school book example.
On page 12 it gets really interesting. "The Compound Interest Advantage". I just have one minor comment on this page, there is no link to the national debt clock.
Tools for saving, page 14. All of these are deposits into the banking system. The word "gold" is not mentioned in the entire file.
Check out the sketch of the bank note on page 15, notice how big they have blown up the eagle, and then the little corner note "To Wise Investor".
The wise investor also learns on page 17, that a reasonable assumption is an investment that compounds with 10% annually. "Use the following chart", the text says, and the chart assumes a 10% return. Again, I have to remind you, this is a FED educational publication. The cognitive dissonance alert is already sky high here.
There is a great tip on page 25, "Avoid the trap of getting 'upside down' - owing more on the car than it is worth". Well.....presented without comment...
Glossary, page 33, notice how many terms starting with "debit, debt".. ??
Page 34, references on how to "learn more about building wealth", references to Fannie Mae, IRS, Freddie Mac. Homerun!
If anyone would give this publication to your friend to learn how to invest, raise your hand!
You're killing me.
Great stuff Zero Debt!
Thanks for the encouragement :)
Another observation, notice in the entire publication and on the web page that all the illustrated people have their eyes closed.
The only open eye is the eye on the pyramid and the sun on the debt cube.
I just cannot conceive how you can build wealth with your eyes closed. Alternatively, the publication targets an audience with closed eyes.
This stuff is subtle.
All right! "Building Wealth for Dummies" -- where're my crayons?
This is Enron stuff, nothing ever changed. Sarbanes Oxley was just a tool to get the suckers back in the market.
And in other news:
The Federal Reserve may allow a full independent audit.
Congress considering a measure to fully weigh, test for fitness, verify who actually owns, etc the gold held in Fort Knox.
Hank Paulson may soon admit in front of congress he knew TARP funds were to bailout banks and not as he proposed and lied to congress.
President Obama hires William Black to head up the FDIC and close down banks, will send to jail those who committed fraud.
The CFTC may soon pass a law to place limits on gold and silver contract trading per company.
To save the country from massive debt, USA decides to remove military bases from over 40 countries and close nearly 200 bases worldwide.
The SEC is seriously in talks to shut down HFT platforms.
The Tooth Fairy caught! Breaking news video seen first here on CNBSABC!
Herds of unicorns rounded up and admonished to: "Stop crapping out skittles!" :DD
I'm closing all accounts with Bank of America this week. Bank locally. I actually started with a local account, but through several successive consolidations, I ended up with BofA.
Sell any GMs, too.
Bam Bam appoints another Czar...no congressional approval required...
Oh swell.
Next, they'll do this to the stock market. How the hell am I supposed to make any money in a long-only 401k? Huh?
I finally figure out all the damn lawbreaking, how to leverage it, and they move the goalposts.
What kind of country is this, anyway?
Perhaps the SEC could clarify the fact that the big U.S. banks are the Federal Reserve. I cannot emphasize the importance of this enough. If the public were to understand this very simple fact, it would be very difficult for the Fed to continue to operate.
Even a cursory glance at the board of directors of the Fed reveals the fact that it's composed of the big banks. Add to that the fact that the Fed isn't a government organization but is instead a private corporation.
I would urge Zero Hedge to explain to everyone that the big banks are the Federal Reserve.
I found lots of interesting information here. I love zerohedge.
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