D
2009-03-25 06:00:57
Please explain to me how banks, which hold many assets at or near par as Held to Maturity, are able to circulate bid lists without either 1) writing down said assets, and hitting either shareholder equity (if moved to Available for Sale) or net income (if moved to Trading), 2) violating GAAP. I’ve seen nothing that would indicate how this were to be done.
And the Obama administration has gone all in on this one. After the bid lists circulate, everyone will know who is holding what. I expect this is part of the plan – get banks to disclose their bad loans/securities to the FDIC (although I don’t know why they can’t simply ask under current regulations). I expect banks to avoid circulating their absolutely worst investments first.
