What's TSLA, AMZN, etc.etc. worth?
Create debt for stock buyback
Tax relief for stock buyback
Bailout in 08 for stock buyback
Bailout in 20 for stock buyback
oh and the kicker, still suspended
Suspension of FASB 157 Mark to Market Accounting On 4/02/09, FASB suspended FASB 157, which required the banks to use mark to market accounting to value their assets. FASB is supposed to be an independent agency, regulating the accounting standards. Congress, put pressure on FASB to suspend the mark to market accounting in order to prop up the banks. This prevented the banks from admitting they are insolvent.
FASB has still not reinstated mark to market accounting. The banks are still carrying these toxic assets on their balance sheets at their original value, not the true fair value, based current market prices. If the banks were required to state the true value of these assets, many would be insolvent. This extend and pretend policy the government is promoting, is propping up these insolvent banks.
The bottom line is, the balance sheet’s of these banks are being propped up by the government, through the suspension of FASB 157. There is no transparency in the balance sheets of these banks. The government is failing to address the true magnitude of this banking crisis. Then again, the FDIC is bankrupt and doesn’t have the money to solve this problem. |
