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I dont post much, but I thought this was a really interesting set of interviews of Bill Black. He was a bank regulator during the S&L crisis. These interviews mostly focus on control fraud.
This is one of the only places I have seen anyone explain the fact that the banking system used FASB to modify a rule change that would have resulted in banks recognizing huge losses, probably close to a trillion dollars. Instead they reported record profits last year and handed out record bonuses.
Basically this rule states that banks will value their toxic assets at face value, instead of their actual value, which is roughly 20 cents on the dollar. Apparently we are supposed to believe that the CDO market is the most dysfunctional market in the history of the world, where 18+ months can pass and not a single bid of fair value is made.
Sorry, I thought I cut/paste the link, but apparently I forgot. Here is the link to the interviews.
http://therealnews.com/t2/index.php?...74&jumival=539
This is one of the only places I have seen anyone explain the fact that the banking system used FASB to modify a rule change that would have resulted in banks recognizing huge losses, probably close to a trillion dollars. Instead they reported record profits last year and handed out record bonuses.
Basically this rule states that banks will value their toxic assets at face value, instead of their actual value, which is roughly 20 cents on the dollar. Apparently we are supposed to believe that the CDO market is the most dysfunctional market in the history of the world, where 18+ months can pass and not a single bid of fair value is made.
Sorry, I thought I cut/paste the link, but apparently I forgot. Here is the link to the interviews.
http://therealnews.com/t2/index.php?...74&jumival=539
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