tag:blogger.com,1999:blog-8431368106238433082.post6295369167661673006..comments2024-03-27T05:19:21.691-04:00Comments on FEI Financial Reporting Blog: Under Pressurefinancial executives bloghttp://www.blogger.com/profile/11084436965192606339noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8431368106238433082.post-85207851334206615612009-03-19T09:29:00.000-04:002009-03-19T09:29:00.000-04:00Yes, I guess I shouldn't be outraged by the accoun...Yes, I guess I shouldn't be outraged by the accounting implications of this mess. Not the worst aspect by far, but I think it is interesting that the accounting rules, and not the derelict and corrupt management of these failed institutions, is to blame. Oh yes, and all the poor people who borrowed in previously red-lined inner city neighborhoods -- they are also the problem here. Amazing.<BR/><BR/>BTW -- Enjoyed the music video greatly. Who would have thought mark-to-market would have a theme song? Let's have more music please.Neilhttps://www.blogger.com/profile/15497847464885522627noreply@blogger.comtag:blogger.com,1999:blog-8431368106238433082.post-82922906236571093792009-03-17T09:20:00.000-04:002009-03-17T09:20:00.000-04:00NeilWhoa, tell me what you really think! But serio...Neil<BR/><BR/>Whoa, tell me what you really think! <BR/><BR/>But seriously, I am glad you posted a comment, it enhances the dialogue to have diverse views. <BR/><BR/>See my notes from the FASB board March 16 webcast, linked in Monday' nights (March 16) blog post, particularly FASB Board Member Tom Linseier's remarks, excerpted from my notes below; I am interested in whether that changes your views any, here is the excerpt from my notes:<BR/><BR/>Linsmeier added, “Part of the thought process I went through this weekend, was trying to figure out, how can Congress and the banks and investors, with different points of view - could it be both are right?” He stated, “I actually came to the conclusion they can be. Congress and the banks telling us fair value has exacerbated the problem, investors tell us fair value is [necessary/useful].” He added that he saw Fed Chairman Ben Bernanke interviewed on 60 Minutes last night, and that Bernanke had observed the need to get private equity investing in banks. Linsmeier described how investors are currently not confident in banks’ reported Tier One capital levels, although those levels (over 11%) suggest the banks are currently well capitalized. He added, “So, what are investors doing? They are using tangible common equity.. for our largest banks, 3%, .. [which] assumes all the losses in Available for Sale (AFS) securities are real, so, there is a possibility if our fair values are too low, investors are thinking things are worse then they are, investors are not going to want to come into those banks if they believe the fair values are too low, so what we are doing now is elevating fair value to a more reasonable point, so [investors can come in there].”Edith Orensteinhttps://www.blogger.com/profile/13119281392433443408noreply@blogger.comtag:blogger.com,1999:blog-8431368106238433082.post-7418132987443483452009-03-16T12:26:00.000-04:002009-03-16T12:26:00.000-04:00It is remarkable that bankers and senior executive...It is remarkable that bankers and senior executives of large corporations have the nerve to pressure the SEC on this question of fair value accounting standards. In the face of the AIG bonus scandal, I suppose such nerve is to be expected, but it is tone-deaf to say the very least. What will be the consequence if the wobbly SEC caves to this pressure? We will have toxic assets paraded across balance sheets as if they were made of gold. And is there really nothing lost when financial statements are themselves toxic? Fraudulent financial statements that nobody will believe - is that really what the SEC is going to support? After all we have been through lately, it is simply obscene.Neilhttps://www.blogger.com/profile/15497847464885522627noreply@blogger.com