Pandit's Amortization Trial Balloon: Can It Float U.S. Out Of Crisis?


	Pandit's Amortization Trial Balloon: Can It Float U.S. Out Of Crisis?

Forbes Markets

2-13-2009 11:41 AM

1073 views

tags:

banking, mark to market, vikram pandit, accounting, regulation

Forbes Markets says:

The net effect would be to achieve the same thing in abnormal times as scrapping mark to market without actually scrapping mart to market, which works well in normal times

Add a Comment

Login to Comment. Not a member yet? Sign up

Today's Top Clips

visit the Top Clips page

View the Top Clips from February 13, 2009

Embed This Clip In Your Site...

<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/245280e5-7155-45b4-bf64-a49b1c12e41e/CEB9FF06-8FD9-4495-8E60-0986892942C3/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.minyanville.com/articles/C-citigroup-market-congress-Pandit-Gutierrez/index/a/21110/from/yahoo" href="http://www.minyanville.com/articles/C-citigroup-market-congress-Pandit-Gutierrez/index/a/21110/from/yahoo" style="font-size: 11px;">www.minyanville.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.minyanville.com/articles/C-citigroup-market-congress-Pandit-Gutierrez/index/a/21110/from/yahoo"><DIV>At yesterday’s congressional hearing, <STRONG>Citigroup</STRONG>’s (<A title="CITIGROUP INC." href="http://finance.minyanville.com/minyanville?Page=QUOTE&Ticker=C">C</A>) CEO Vikram Pandit floated what looked to me like a trial balloon that may turn out to be the path out of the credit-induced economic crisis and, in the process, put to bed the doomsayers' chatter about insolvent banks. </DIV></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.minyanville.com/articles/C-citigroup-market-congress-Pandit-Gutierrez/index/a/21110/from/yahoo"><DIV>In reply to a question from Congressman Gutierrez from Illinois -- who started off referencing a meeting the congressman and Mr. Pandit had the day before -- Mr. Pandit, with an intriguing smile on his face, described what sounded to me like an <A href="#" class="kLink" target="undefined" id="KonaLink0"><FONT color="blue"><SPAN class="kLink">amortization</SPAN></FONT></A> scheme in which the mark-to-market created losses for certain assets could be realized by the banks, not as an immediate and complete hit to the income statement (thereby impacting the balance sheet and, therefrom, the capital requirements of the bank), but on an amortized basis over time, which will have the effect of limiting the preposterous losses induced by illiquid markets and their last sale/“fair value” price. </DIV></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/CEB9FF06-8FD9-4495-8E60-0986892942C3/blog/" title="blog or email this clip"><img src="http://content9.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

New from the makers of Clipmarks: Amplify.com - Don't just share the news...Amplify it!

Clipmarks: Home; New Clips; Top Clips; Dashboard

Popular Topics: News; Life; Science; Technology; Entertainment

Get Started: Sign Up; Install Clipping Tool; How Clipping Works; Clip-to-Blog™; ClipSearch

Tools and Resources: FAQ; ClipWeek; Top Clippers; Top Tags; Site Map

About Clipmarks: About Us; Contact; Copyright; Privacy; EULA

Search Options

Today's Top Clips