FASB Eases Fair Value Rules – Bloomberg

Bloomberg:

From Norwalk, CT: Interview with Patrick Finnegan of CFA Insititute (Bloomberg News)

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April 2, 2009. Tags: , , , , , , , , , , , , . Politics. Comments off.

Update: FASB modifies Mark to Market…

UPDATE: 9:33AM est: On the wires now here

The changes will allow the assets to be valued at what they would go for in an “orderly” sale, as opposed to a forced or distressed sale. The new guidelines will apply to the second quarter that began this month.

In a twist, though, the expanded leeway for financial institutions could undercut the government’s new financial rescue program in which it is joining with private investors to buy up about $500 billion in toxic assets from banks, some experts say.

The mark-to-market rules have forced banks to take steep write-downs on some assets, especially securities tied to high-risk subprime mortgages.

An estimated $2 trillion in soured assets is gumming up banks’ books. As the financial crisis has ground on, more banks have foundered and failed. That’s prompted the industry and lawmakers of both parties to push for the accounting relief and flexibility.

But some fear that companies will use the leeway to boost the value of the assets on their books to “unrealistic levels,” Robert Willens, an expert on tax and accounting issues for Wall Street clients, told The Associated Press last week.

We’re back!! Check out FASB news on the first vote on changes..

Breaking on CNBC right now,

FASB removes presumption that assets in inactive market are automatically distressed’

FASB: New mark to market guidance should be prospective not retroactive: new guidance effective for 2009 Second Quarter; Q1 application permitted

(this will help financials use cash flow instead of last price to mark assets in frozen markets, more votes from FASB coming forthwith!)

PS Were I Jamie Dimon, I would remark with these rules and I would NOT sell into the Geithner PPIP plan, I would wait for my assets to come back, which is what the banks have been doing already, sort of counter productive in some ways we shall see..

Financials  SOARING on the news, brushing off a bad weekly jobless claims number..

DJ futures up 118 and financials across the board higher…

April 2, 2009. Tags: , , , . Economy, Finance, Housing, Obama Administration, Politics, TARP, Wall St. 1 comment.

Update: Market Movers Roundup…

Clips of Geithner before Senate Budget Cmte today:

nice day for the markets, Bear Market rally continues

DOW up 191 to 7121

S & P up 22 to 743

Nasdaq up 39 to 1410

Markets happy on retail sales numbers, February drop less than expected and January revised up

Mary Schapiro of SEC said she is amenable to revising the manner in which mark to market is applied on assets in distressed/frozen markets..

Geithner chatting to Critters on the Hill, again, and the comments from Dems like Byron Dorgan and Kent Conrad on the wires suggest the Obama Budget will face some resistance on ther cap and trade and health care funding, good news for the markets..

Here our Unbiased media calls refers to this as the Dems ‘raising their ugly heads’ Niiiice

Jamie Dimon single-handedly brought spirit back to the street last night in his address to the US Chamber of Congress, we will post it..

Madoff is in custody…

GM tells the Auto Task Force it wonlt be needing the 2 billion for Marc h after all (sounds like they got a load of the task force at their big auto plant tour and are running like crazy from the strings they will put on them, good move)

Ken Lewis is also giving a speech and speaking forcefully against nationalizing banks…

March 12, 2009. Tags: , , , , , , , , , , . Economy, Finance, Obama Administration, Politics, TARP, Taxes, Uncategorized, Wall St. 1 comment.

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