Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: Shakush who wrote (11904)	12/24/1997 3:43:00 AM
From: Elroy Jetson	Respond to of 25960

Your reading is correct. Japanese banks will be required to disclose the true losses and gains from Book Value on their stock holdings. If the bank has a net gain on their stock holdings, the Book Value plus the gain can be used to make up their capital base. However, if they have a net loss on their stock holdings, only the Book Value of the stock holdings are used to make up the capital base. Thus, stock market losses magically do not erode a bank's capital. So a portion of a bank's equity of 4% (domestic) or 8% (international) can actually be lost in the stock market and still count. They just have to disclose how great that loss is. Now there's a measure that's guaranteed to restore confidence in the Japanese banking system! What drugs are they on?