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To: neolib who wrote (151162)9/27/2008 12:08:44 PM
From: SGJRead Replies (1) | Respond to of 306849
 
The problem is that with crisis pricing and crisis fluctuations in pricing, and accounting rules that require mark to market any given bank might be forced into BK, hence it is not safe to lend to them

The accounting rules affect appearances and psychology only. They don't change the day to day business operations. The asset types of each and every bank are well known to the regulators.

Hint: check the financial institutions with large insider buying over the past 30 days.



To: neolib who wrote (151162)9/27/2008 12:25:59 PM
From: bentwayRead Replies (2) | Respond to of 306849
 
Let the weak banks fail and the strong survive. It sounds like you don't believe that banks CAN know what's on their books, and if that's true, things have gotten way to exotic to continue.

Or that post was just BS without a <g>?



To: neolib who wrote (151162)9/27/2008 12:30:04 PM
From: Les HRead Replies (2) | Respond to of 306849
 
It wasn't crisis pricing. The securities were no longer AAA-rated and the prices were adjusted to reflect the higher risks.