{"id":192014,"date":"2009-05-22T05:08:00","date_gmt":"2009-05-22T10:08:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2009\/05\/22\/fasb-rule-will-force-banks-to-move-assets-onto-books\/"},"modified":"2009-05-22T05:08:00","modified_gmt":"2009-05-22T10:08:00","slug":"fasb-rule-will-force-banks-to-move-assets-onto-books","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2009\/05\/22\/fasb-rule-will-force-banks-to-move-assets-onto-books\/","title":{"rendered":"FASB Rule Will Force Banks to Move Assets Onto Books"},"content":{"rendered":"<p>Effective for reporting periods after November 15 of this year, the <a href=\"http:\/\/www.bloomberg.com\/apps\/news?pid=20601087&amp;sid=aF7xhCfMRWAI&amp;refer=home\">Federal Accounting Standards Board (FASB) is requiring that the assets of Qualifying Special Purpose Entities (QSPEs) be reported &#8220;on the books&#8221;<\/a>.<\/p>\n<p>Yes, I know your first question, &#8220;Can I have that translated please?&#8221;<\/p>\n<p>The quick translation is that these are &#8220;off balance sheet entities,&#8221; which are used to conceal losses and risk.<\/p>\n<p>Here is a snapshot:<\/p>\n<blockquote style=\"color: rgb(0, 0, 153);\"><p>Lenders recorded profits before the U.S. subprime mortgage market collapsed in 2007 by selling pooled loans to off-balance- sheet trusts, which repackaged the pools into mortgage-backed securities. Banks then sold those securities to other off- balance-sheet vehicles they sponsored, concealing from investors that the securities were backed by deteriorating mortgages. <\/p><\/blockquote>\n<p>As to the next obvious question, &#8220;What does this all mean?&#8221;, it means that significant losses and risks which, until now, have not been a part of many financial institutions reporting, will be reported, and significant losses will result.<\/p>\n<p>How much?<\/p>\n<p>Well, the article says about $900 billion, but my guess is that this is low, because one is always shocked when one turns over a rock.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Effective for reporting periods after November 15 of this year, the Federal Accounting Standards Board (FASB) is requiring that the assets of Qualifying Special Purpose Entities (QSPEs) be reported &#8220;on the books&#8221;. Yes, I know your first question, &#8220;Can I have that translated please?&#8221; The quick translation is that these are &#8220;off balance sheet entities,&#8221; &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[970,1004,985],"tags":[],"class_list":["post-192014","post","type-post","status-publish","format-standard","hentry","category-corruption","category-finance","category-regulation"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/192014"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=192014"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/192014\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=192014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=192014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=192014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}