Friday, June 5, 2009

That Turned Out Well, Didn't It?

The FASB's little rule change from back in April is working its magic. Floyd Norris posts on a Credit Suisse analyst who has calculated that Q1 pretax earnings improved by $4.9B for the twenty financial companies that adopted the rule early. In some instances the increase was greater than 5%. Um, material?

Asset values for five of the twenty companies were marked up to $4.5B from $27M as result of the FASB's caving to Congress clarification of the mark-to-market rule.

Appears reasonable.

Seeking Reality in Bank Balance Sheets [Floyd Norris/NYT]
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