Mish's Global Economic Trend Analysis: Not Practical To Tell The Truth: "The Financial Accounting Standards Board postponed a measure, opposed by Citigroup Inc. and the securities industry, forcing banks to bring off-balance-sheet assets such as mortgages and credit-card receivables back onto their books.
FASB, the Norwalk, Connecticut-based panel that sets U.S. accounting standards, voted 5-0 today to delay the rule change until fiscal years starting after Nov. 15, 2009. The board needs to give financial institutions more time to prepare for the switch, FASB member Thomas Linsmeier said at a board meeting.
'We need to get a new standard into effect,' Linsmeier said, though 'it's not practical' to begin requiring companies to put assets underlying securitizations onto their books this year......
Merrill Lynch Sells CDOs at 5.5 cents on the dollar
On July 29th it was reported that Merrill Lynch "raised capital" by selling CDOs. See Ratchet Provisions Soak Merrill Lynch, Will Sink WaMu. Merrill got an initially reported 22 cents on the dollar for this sale. Commentators went "gaga" on the news with another ridiculous round for "bottom calls" from nearly every corner. Well for starters 22 cents on the dollar is one hell of a writedown and nothing to cheer over. And the plain fact of the matter is that Merrill really only got 5.5 cents on the dollar as explained in Merrill Gives Up Gains, Is `On Hook' for CDO Losses.
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