http://curiouscapitalist.blogs.time.com/2009/04/20/mark-to-markets-strange-accounting-benefits-for-citi-and-bofa/ Commentary on the economy, the markets, and business Sat, 05 Dec 2009 05:18:44 +0000 http://wordpress.com/ hourly 1 http://curiouscapitalist.blogs.time.com/2009/04/20/mark-to-markets-strange-accounting-benefits-for-citi-and-bofa/comment-page-1/#comment-13718 nathan7777 Mon, 20 Apr 2009 23:08:28 +0000 http://curiouscapitalist.blogs.time.com/?p=5194#comment-13718 It seems to me that the more pressing question here is thus: . Why is the CDS contract, as used as a means for hedging liability, even subjected to mark-to-market rules, especially considering the fact that a hedge CDS is effectively an insurance policy? Insurance policies are not subjected to to mark-to-market, so why a hedge CDS? . It seems to me that the regulators were not thinking when they wrote the rules. It seems to me that the more pressing question here is thus:
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Why is the CDS contract, as used as a means for hedging liability, even subjected to mark-to-market rules, especially considering the fact that a hedge CDS is effectively an insurance policy? Insurance policies are not subjected to to mark-to-market, so why a hedge CDS?
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It seems to me that the regulators were not thinking when they wrote the rules.

]]> http://curiouscapitalist.blogs.time.com/2009/04/20/mark-to-markets-strange-accounting-benefits-for-citi-and-bofa/comment-page-1/#comment-13717 chazzai Mon, 20 Apr 2009 22:03:10 +0000 http://curiouscapitalist.blogs.time.com/?p=5194#comment-13717 Tell me, are Citi and BoA marking their other bits to market? Wasn't the last MtM fuss about banks not having to mark assets to market so as to avoid large sudden write downs? So are they getting to pick which assets get marked to market? This all seems very odd Also, if they pick and choose, doesn't this influence their tax exposure? and thus the money they are giving to the government who, err, gave them a load of money quite recently. Curiouser and Curiouser. Tell me, are Citi and BoA marking their other bits to market? Wasn't the last MtM fuss about banks not having to mark assets to market so as to avoid large sudden write downs? So are they getting to pick which assets get marked to market?
This all seems very odd
Also, if they pick and choose, doesn't this influence their tax exposure? and thus the money they are giving to the government who, err, gave them a load of money quite recently.
Curiouser and Curiouser.

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