LOL! It’s impossible for you to prove your assertion as well.
Are you familiar with the Allowance for Loan Losses that all banks must carry on their books? Whether they write individual loans down or not, they must still recognize expense on mortgage pools in this account. The Allowance is not only reviewed by regulators, but also external CPA auditors. You’ll be hard pressed to find either auditors or examiners going soft on banks right now. In fact, in many ways they are going very far in the other direction.
Actually, I’m a life long banker - CFO so I know what goes on and what’s going on in the banking world.
Banks are not generally writing down 90 day past due RE loans to market as they have done in the past, period. If they did, lots more would go under - it’s a house of cards.
The Allowance for Loan and Lease Losses is only charged when a write down takes place. Auditors and examiners, especially examiners work in a very political environment - politics enters into the ALLL equation a lot more than it should. Outside Auditor are paid by banks, they are a huge joke - just look at Enron, etc.
Also, mortgage pools - held as securities are not written down to the ALLL - when they are adjusted to market - it’s a direct hit to capital and doesn’t go through the ALLL - because, they are not loans or leases.
This is your banking lesson for today.