Banks NOW Getting HAMMERED; WTF Will They Do When M2M Under FASB Is Re-Enacted?

[ipatent]

Quote from trendlover:Ok, I understand.
But why change the strategy (no mark to market) that was to help a recovery, before they give that strategy time to work?

It wasn't to help a recovery, it was to hide bank insolvency.

Quote from trendlover:If there is no value in transparency before (so they say no mark to market) why is the value now?

The cynical view would be that GS has stolen enough in the last six months so it can now show solvency under M2M, and now they want to take down C and BOA and some of the large regional banks so they can gobble up market share.

However, I have heard that BIS is applying pressure.

 

[trendlover]

Quote from ipatent:

It wasn't to help a recovery, it was to hide bank insolvency.
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Ok, to hide that until they have a market for toxic assets?

Quote from ipatent:

The cynical view would be that GS has stolen enough in the last six months so it can now show solvency under M2M, and now they want to take down C and BOA and some of the large regional banks so they can gobble up market share.

However, I have heard that BIS is applying pressure.

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Who has more power to say yes to merger and aquisition by GS, the BIS or Fed?

 

[JB3]

The only reason why M2M was suspended is because the banking sector would have imploded overnight. Fannie and Freddie will be basically insolvent, and so would most of the bigger banks. That's what happened to Bear. Most of the banks would have imploded just as quickly if M2M wasn't suspended for them.

They over-leveraged that the banks had no value if the bad loans were marked to market.

 

[Kassz007]

Quote from number22:

Canadian don't have to do M2M until market conditions change to their favor.

I'm not sure what you're trying to say in that last post. I just proved this quote wrong with my last post. If you could, please provide some type of backup to your argument that Canadian banks don't have to adhere to mark to market rules. I think you are wrong.