Bank Accounting & Finance articles from December 2008

Bank Accounting & Finance archives from December 2008

Litigation and enforcement one year into the credit crunch: to date, federal supervisory agencies have announced few significant enforcement actions.
December 1, 2008... Litigation and enforcement are lagging variables. One year into the credit crunch, many lawsuits and investigations have been launched against financial institutions that have announced losses, but there have not yet been significant decisions...

Is fair-value accounting responsible for the financial crisis? Is this a case of shooting the messenger?
December 1, 2008... In late September and early October, the WALL STREET JOURNAL (WSJ) published various articles describing how the banking industry has "stepped up its criticisms of fair-value accounting rules that have forced them to write down the assets to...

Accounting for troubled debt restructurings: accounting and regulatory reporting rules applicable to modifications of loans held in portfolio.
December 1, 2008... Even in the best of times, management's estimate of the allowance for loan and lease losses (ALLL) draws scrutiny from investors, regulators and auditors. Although the current crisis began in the subprime mortgage market, it has spread to other...

Retail deposits: pricing to win in a tight market: current intense pressures on the U.S. retail deposit business likely will persist for several more years.
December 1, 2008... In the recent turbulent market environment, the retail deposit business is more valuable and essential than ever, but it is also under tremendous pressure. As financial institutions compete ferociously for balances to meet liquidity needs,...

Private equity investment in U.S. financial institutions: the federal reserve's new policy will make it easier for private equity firms to move into the banking system.
December 1, 2008... Financial institutions in the United States have been hit hard by the subprime crisis and its related fallout. For many institutions, this has resulted in a need to raise capital that cannot be met through traditional capital markets channels....

Banks face new disclosures about derivatives: a new FASB standard aims to improve financial reporting about derivative instruments and hedging activities.(FASB Report)
December 1, 2008... The recent 15 years have witnessed periodic shocks from derivative schemes that have misfired. In 1994, Procter & Gamble lost $102 million on derivative contracts that were designed by Bankers Trust. Just four years later, the hedge fund...

SEC issues guidance on fair-value accounting and amends rules applicable to foreign issuers: interpretative guidance eases expectations for fair-value determinations.(SEC Update)
December 1, 2008... During the third quarter, the Securities and Exchange Commission (SEC) provided guidance on fair-value accounting in response to the current credit crisis and because of the criticism fair-value accounting has received in the press. The SEC...