*let me see if I have this right. FASB says mark to market for 2007 and ALL of 2008 so banks have writedown central to the tune of taxpayer bailouts at $1Trillion. Then in April of 2009, FASB suspends that rule and voila, no more writedowns, but now they will enact rules, to go into effect in 2010, that will force banks to take on credit card losses etc., and this will show a ned for more capital under the stress tests. What a country. -Tradebum
By Ian Katz
April 30 (Bloomberg) -- The Financial Accounting Standards Board is “pretty close” to approving rules on off-balance- sheet accounting that will force banks to add billions of dollars of assets to their books, Chairman Robert Herz said.
Rules letting companies keep assets including mortgages and credit-card receivables off their balance sheets “were stretched,” Herz said today at an accounting conference at Baruch College in New York. The changes would take effect next year, he said.
U.S. bank regulators conducting stress tests on 19 banks calculated that the financial institutions would record $900 billion in off-balance-sheet assets in 2010, according to an April 24 Federal Reserve report.
In July, FASB postponed by at least a year the effective date of the changes after banks including Citigroup Inc. and trade groups complained. The Securities Industry and Financial Markets Association and the American Securitization Forum said the measure may make companies appear to be short of capital during regulatory reviews.
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