Wednesday, July 30, 2008

Another Hidden Bailout......FASB Delays New Rules Off-The-Book Vehicles

"Enron-esque characteristics".......It looks like the "creativity"( see latest example Fed Loans to Failed Banks Made Easier by Fannie-Freddie Rescue ) of the Fed, Treasury & SEC aren´t enough to avoid the meltdown.....If the rules are not in your favour......... I´ll bet that this won´t be the last "delay"........ Got Gold?

Spontan fällt mir dazu die Bezeichnung "Enron-esque characteristics" ein..... Die zum Teil halsbrecherischen Aktionen der Notenbanken ( siehe gestriges Beispiel Fed Loans to Failed Banks Made Easier by Fannie-Freddie Rescue ) sowie des Finanzministeriums genügen anscheinend nicht mehr um den Gau in vielen Fällen zu verhindern. Schon nett anzusehen wie nach und nach all die Regeln die für eine wirksame Bilanzierung notwendig sind entsprechend der "Kassenlage" aufgeweicht werden. Jede Wette das dies nicht die letzte "Verlängerung" der Frist ist.....

Mal ganz davon abgesehen das alleine die Regel das man ohne weiteres ausserhalb der Bilanz riesige Summen an Verbindlichkeiten aufbauen kann der Traum eines jeden Banklobbyisten war zu einem Großteil der aktuellen Probleme geführt hat. Fragt mal bei der IKB, Sachsen LB, West LB usw. nach....... Got Gold?

FASB Delays New Rules On Off-the-Book Vehicles WSJ
Accounting-rule makers will delay by a year proposed changes that could force banks and other financial firms to take onto their books certain off-balance-sheet vehicles that played a central role in the credit crunch.

The Financial Accounting Standards Board initially decided that the rule changes should take effect starting next year for new structures that companies may want to keep off their books, but not until 2010 for existing ones. Following calls from companies and legislators that companies needed more time, the board on Wednesday agreed to make the changes for both new and existing structures effective in 2010.

If adopted, the rule changes could have a significant impact. Citigroup Inc. alone has more than $700 billion in assets in vehicles that it may have to bring back onto its books under the changes. The proposals also have sparked concern that Fannie Mae and Freddie Mac could have to consolidate trillions of dollars in mortgage assets, but the firms already account for these securities.

FASB Chairman Robert Herz said he was reluctant to delay the changes because many companies had abused existing standards to improperly keep vehicles off their books. The board initially tried to tighten the rules for off-balance-sheet vehicles in the wake of the Enron Corp. collapse earlier in the decade, but banks and others found ways around the rules.

Many observers believe that off-balance-sheet vehicles used by banks and others helped fuel the excesses of the housing boom. But Mr. Herz said he agreed to the delay after consulting with investors who said they would prefer a single start date for any rules change.

A delay raises the prospect that banks and others will have more time to try to beat back the proposed changes. The changes will be significant because they will make it more difficult, and in some cases more expensive, for banks and other financial firms to use off-balance-sheet vehicles to sell off, or securitize, assets.

FASB must still put out a draft of the proposed rules changes and, after a period of public comment, give final approval.

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