Banks Try to Stiff-Arm New Rule(WSJ)
Yes! More “progress” through obfuscation and accounting manipulation!
A group that includes the Chamber of Commerce, the Mortgage Bankers Association, and the American Council of Life Insurers and others sent a letter on June 1 to Treasury Secretary Timothy Geithner, regarding the off-balance-sheet accounting-rule change, saying it should be adopted “cautiously and seek to minimize any chilling effect on our frozen credit markets.”
The letter was signed by 16 industry associations, many of which were part of a group known as the “Fair Value Coalition,” which was formed earlier this year with the goal of changing mark-to-market accounting rules. Mark-to-market accounting rules set guidelines for banks on when they are required to reflect market prices in the values they assign to hard-to-value securities and other assets.
Now the group of financial organizations is trying to put the brakes on the off-balance-sheet accounting measure, which would force banks to bring hundreds of billions in assets back onto their balance sheets at the beginning of 2010, effectively forcing them to set aside more capital. Some accounting experts say they aren’t surprised by the banking industry’s latest effort. “Here we go again. They will get out their checkbooks and go to the Hill,” says Lynn Turner, the Securities and Exchange Commission’s former chief accountant.
What’s that saying, those who fail to learn from history are what?
With Japanese Cash, Morgan Stanley May Exit TARP (Dealbook)
Mazel tov, Mack.
House Lifts Lid on its Expenses (WSJ)
Finally a (small) step in the right direction, namely, increased transparency from Congress, purveyors of rank hypocrisy.
The House will begin posting representatives’ expense reports online, giving the public easy access to records of the millions of dollars lawmakers spend on staff and items such as catering, cars, computers and TVs.
Separately, Sen. Tom Coburn (R., Okla.) said Wednesday he would introduce a bill requiring the expense records be posted online in the Senate, as well. Such disclosures are “something that we will take a look at,” said Jim Manley, spokesman for Senate Majority Leader Sen. Harry Reid (D., Nev.).
Somehow I don’t expect this action to reveal any ruh-rhos or red flags since any “scandalous” spending is no doubt arranged outside of Congresspeople’s office budgets (Pelosi’s reported frequent private jet usage, for example).
Guidance on Short-Selling Needed: GAO (NYT)
Actions taken by the Securities and Exchange Commission at the height of the market turmoil last year appear to have reduced abusive short-selling, but the agency should provide clearer guidance to the brokerage industry for applying the rules, congressional auditors concluded in a report issued Wednesday.
SEC Probes Lehman Research (WSJ)
The Securities and Exchange Commission is investigating whether information about imminent stock upgrades and downgrades was improperly used by employees at Lehman Brothers Holdings and others, according to a letter released by Sen. Charles Grassley.
Why Ackman Failed vs. Target (Ironfire Capital)
Eric Jackson (remember minority Yahoo! dissenter?) presents a detailed analysis of why Pershing Square’s Bill Ackman failed in his bid to install his slate of directors on Target’s BoD. I don’t always find myself seeing eye to eye with Eric, but he’s presented a cogent argument here that touches upon facts I’ve yet to see discussed elsewhere.The language from Target’s press release includes words like “shareholders appear to have” elected the incumbent directors by a “comfortable” margin. Gregg Steinhafel, Target’s chairman, president and CEO, goes on to thank shareholders for their “overwhelming” support of management. Towards the end of the press release, Target suggests it will get around to actually releasing “preliminary” voting results in three to four weeks. Final results will come later, but no timeline was provided. Technically, Target doesn’t have to share the final results until the end of August — 60 days after the end of the quarter in which the annual meeting took place.
I find it insulting to shareholders that companies can get away with not releasing voting results immediately after the meeting. A month ago, Bank of America(BAC Quote), a much larger company than Target, with more votes to be counted, and also facing a large number of dissenting shareholders, provided a detailed accounting of its tally before 5 p.m. the same day as the meeting. Target gets to drag its feet for three months, while posturing to the press working on deadline that it enjoyed a sizable win.
Doesn’t this sound more like how a banana republic runs itself, rather than one of the largest retailers in the world?Take a look for yourself
--Brought to you by anal_yst
Probe Lehman with the intent to what? Stop them? Fine them?
Use of corporate (private) jets by congresscritters would be reported as expenses since the critters usually reimburse their corporate overlords. Problem is that reimbursing is not done for the true costs of the flight. For example, the critter reimburses for the cost of a first class fare while the cost of the private jet flight could be around four times that.
No sense in singling out a single critter except to collect cheap political points. This is legal and if you have a problem with it, demand for the rules to change.
Rumors that Gordie Brown resigned. GBP getting killed.
Is it 4:00 yet?
@2 She’s not using corporate (private) jets. She’s demanding them from the USAF.
the end is near for GBrown – but not today
tip of the day to the new smart SEC: Madoff securities is front running its clients. You can focus on that once you are done with Lehman.
Things are really changing and timing is everything
@5
Thats what I’m sayin mang
Also, there should be a “don’t” in there, as in “Somehow I DON’T expect this action to reveal any ruh-rhos or red flags…”
My b.
@5
That has been debunked here:
http://www.snopes.com/politics/pelosi/jet.asp
But of course you and anal have the right to focus on non-issues while the real issue is ignored. The real issue is corporate private jet use by congresscritters. Those jets come at a huge discount, with a good meal and a friendly and super smart lobbyist to escort you all the way to your destination airport.
Someone sent this to TGFD yesterday. If it has already been around the DB circuit, I apologize for the repetition. TGFD was away for 2 weeks, and this is from May 19th.
If you haven’t seen it, please watch. This 5:24 video is bizarre, to say the least. It’s also on-topic for today’s Opening Bell, I think.
“He is former prosecutor, House Democrat Alan Grayson; she is Elizabeth Coleman, Inspector General of the Federal Reserve. The issue is oversight at the Federal Reserve. Watch it and weep.”
http://dailybail.com/home/there-are-no-words-to-describe-the-following-part-ii.html
The Guy from Delaware
please stop using the word “critters”.
11, don’t you think it is so apo pos though?
“crit·ter (krtr)
n. Informal
1. A living creature.
2. A domestic animal, especially a cow, horse, or mule.
3. A person.”
http://www.thefreedictionary.com/critter
@9
Thanks for the link, but that’s also why I used the word “reported.”
I’m curious if you or anyone else knows about how often (if at all) our elected officials are “lent” use of private individual’s/firm’s corporate jets…
@13
http://www.msnbc.msn.com/id/12616010
It takes investigative reporting to sort this out, but some have done it in the recent past (link above). I have no time to research this further.
Finally, some honest politicians:
http://dailybail.com/home/satirical-gold-bailout-comedy-video-from-the-onion-is-it-tim.html
Finally, some honest politicians:
http://dailybail.com/home/satirical-gold-bailout-comedy-video-from-the-onion-is-it-tim.html
@10, @15, and @16.
If you can come up with some links that don’t include the spammer aka dailybail, I will consider clicking your links, otherwise not going to effin’ happen.
@14
Thanks for the link. While I’d certainly like to be able to use private jets (helicopters, yachts, etc) from “friends” methinks that practice is a bit questionable, at best, and transparently horsesh*t at worst (i.e. in reality).