FASB Eases Mark-to-Market Rules
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As expected, the Financial Accounting Standards Board, or FASB, has voted to relax fair-value, or mark-to-market, rules. The change will go into effect in the second quarter and will not be retroactive.
The changes will allow banks to use "significant" judgement in valuing assets, instead of market prices. Analysts have said the move could boosts banks net income by 20% or more, although Bank of America's (NYSE: BAC) CEO Ken Lewis said this is too optimistic.
This ruling will affect various financial institutions like Bank of America (NYSE: BAC), JP Morgan (NYSE: JPM), Citigroup (NYSE: C) Wells Fargo (NYSE: WFC), Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS).
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Comments
Bank of America
I have stock in BAC, and I personally, like Mr. Ken Lewis. I believe that he is a good man and a very smart man. He is also a thinker, and I like him. As it is now, I am losing a lot of money in my banking stocks, and I have lost all of the dividends, so be it. I do believe that the banks, left alone, will recover. The government getting involved, with management is a mistake. If elected officials had the know how, they wouldn't be politicians. I know. You're saying why did they need the money. They sure as hell didn't need sub-prime lending, did they???? Ask Barney Frank, and Bill Clinton about that one. One other thing. I also own stock in CITI Group. I have heard rumors that CITI, is thinkink of a reverse split. I would prefer to see the stock go to zero, and I should lose everything, before they do a reverse split. I don't know who started that rumor, but Mr. Pandit should come out and make a comment about it. I wonder if someone is trying to destroy CITI? What do you think???? Here is another thought for you. JPM. I believe that JPM could be in the league of Goldman Sachs. Think that I am crazy. Wait and see. I believe in JPM, BAC, and CITI. We will have a world economy, and what better banks are there to represent us. The financial world cannot and does not turn without the banks. Barney Frank, Dowd, Schummer, and former Pres. Clinton, should hang there head in shame with their sub-prime lending! It's incredible, but the politicians are doing a damn good job of ruining our country. Have a good day. Invest.
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Bank Of America
Dennis H on Apr 2, 2009 09:45 PMVery well said Bernie. Only think I disagree with you on saying you would like to see Citi go to 0. A reverse split will not hurt you and if the price does not increase they could be delisted and also the big boys don't purchase too many stocks under $5.00. I think a reverse split would be good.