Bloo Loo Posted July 12, 2010 Share Posted July 12, 2010 Breaking on Doomberg. Heres a link. Bank of America has admitted to engaging in six end of quarter transactions that removed as much as $10.7 billion from the company's balance sheet. Read more: http://www.businessinsider.com/bank-of-america-balance-sheet-transactions-2010-7#ixzz0tT4or0Qe Anyone else think the banking crisis is over? Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted July 12, 2010 Share Posted July 12, 2010 Correct accounting would have seen Bank of America's tier 1 capital ratio decline by 0.01% Hardly seems worth it. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted July 12, 2010 Author Share Posted July 12, 2010 (edited) Hardly seems worth it. Its unbeleivable. from the CNBC web: The error was first disclosed in the bank's first quarter 2010 report, which noted the bank incorrectly accounted for some mortgage-backed securities as sales, rather than repurchase or short-term lending deals.The first such error occurred on March 31, 2007, totaling $4.5 billion in securities. The largest misclassification was $10.7 billion in securities on September 30, 2008. thats 2 out of 6...and thats 15.2bn dollars of enron sales. Edited July 12, 2010 by Bloo Loo Quote Link to comment Share on other sites More sharing options...
erranta Posted July 12, 2010 Share Posted July 12, 2010 Breaking on Doomberg. Heres a link. Bank of America has admitted to engaging in six end of quarter transactions that removed as much as $10.7 billion from the company's balance sheet. Read more: http://www.businessi...7#ixzz0tT4or0Qe Anyone else think the banking crisis is over? See this in 'comments' below? - another of their defrauding mechanisms! Just about all banks hide their real debt, thanks to the market to market, hide the weenie AKA rule 157 introduced in April 2009. The new rule 157 allows banks to hide their non-credit losses. This means non-credit losses are NOT included in the bank's earnings. Here's a simplified example: Bank A holds a securitized pool of mortgage-backed assets (MBA) originally valued at $100. After modeling the future cash flow of the pool, the bank projects it will ultimately collect $95. The credit loss is $5. However, due to economic factors, the MBA pool is currently worth only $40, a $60 loss. The difference between the two calculations ($60 - $5) is the noncredit loss - $55. Quote Link to comment Share on other sites More sharing options...
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