Wish I weren’t so clueless....this is all ‘french’ to me.
Seems like the banks were cooking the books. Half a trillion in potentionally bad loans.
The reason banks did this was to appear more financially solid than they were. Otherwise, they would be put on the “at risk bank list”, which is a red alert warning that they are in danger of collapse, and could cause their stock price to crash.
Here is the current (unofficial) at risk bank list (682 banks):
http://calculatedriskimages.blogspot.com/2010/04/unofficial-problem-bank-list-april-9.html
Here is the list of banks that have failed since Oct 1, 2000
http://www.fdic.gov/bank/individual/failed/banklist.html
And, since late 2006, 381 mortgage lenders have failed:
So, with this new accounting requirement, that forces banks to include their bad loans, there is a good chance that the first link, of “at risk banks”, is soon going to increase in size.
Bernie Maddof is in Jail but Robert Rubin is not and Franklin Raines are not. Wonder why that is? Who benefited from cooking the books? Robert Rubin was so naive, we are to believe that he did not know that Citi had risky CDO’s
totaling tens of billions of dollars.. Wow and he was the top guy too! They must not be very smart over at Citi if he was the top man over there. Oh he left and made $126 Million for his efforts. Then the Fed gave Citi $45 Billion in loans to cover what he did. Wow. That’s nice work if you can get it. And nobody will go to jail either. Also trace where the Dems got their financing from..
mmm