"What we expected and deserve:"
"What we are getting:"
Adolescent fantasies aside I am referring to the FASB ruling on off balance sheet accounting. From Bloomberg Jul 30:
FASB Postpones Off-Balance-Sheet Rule for a Year (Update1)
By Jody Shenn and Ian Katz
July 30 (Bloomberg) -- The Financial Accounting Standards Board postponed a measure, opposed by Citigroup Inc. and the securities industry, forcing banks to bring off-balance-sheet assets such as mortgages and credit-card receivables back onto their books.
The Securities Industry and Financial Markets Association and the American Securitization Forum complained that the changes, which could affect as much as $11 trillion of off-balance-sheet entities, may make companies appear short of capital to regulators and lenders.
The ``abrupt consolidation'' of off-balance-sheet structures ``is likely to swell the balance sheets of the affected entities.''
Many lenders made profits in the run-up to the subprime- mortgage crisis by selling pools of loans to off-balance-sheet trusts known as qualified special purpose entities, or QSPEs, which repackaged the pools into mortgage-backed securities. Some banks then sold those securities to other off-balance-sheet vehicles they sponsored, such as so-called asset-backed commercial paper conduits.
The off-balance-sheet entities are ``orphan trusts'' that represent ``securitization gone wild,'' he said.
Securitization gone wild? We can do that:
Unlike the FASB this time the mud being thrown isn't obscuring what is going on.