FASB strong-armed into “mark-to-fantasy” accounting
In a Bloomberg article today, there was a further indictment of the U.S. financial crime syndicate, and the spineless, political lackeys – who serve their masters without question.
It was revealed today that the chairman of the Financial Accounting Standards Board, the “watch-dog” and (so-called) regulator of U.S. accounting practices caved-in to extreme, political pressure from Washington politicians, as well as the ultra-powerful, bankster-lobbyists.
Bloomberg deserves some credit for exposing the “threats” from politicians, which led to the official sanctioning of “mark to fantasy” accounting for U.S. financial corporations, as well as those companies (like General Electric) with large, financial units.
However, Bloomberg negates those good intentions, by immediately lapsing into more absurd, pro-bankster propaganda. In the first paragraph of its propaganda, it crows “an overhaul of fair-value accounting...may improve profits at banks such as Citigroup Inc. by more than 20 percent.”
You have to read to the middle of the article to see what Bloomberg really means by improving “profits...by more than 20 percent.”
“Companies weighed down by mortgage- backed securities, such as New York-based Citigroup, could cut their losses by 50 percent to 70 percent, said Richard Dietrich, an accounting professor at Ohio State University in Columbus.”
In other words, there is no prospect of fraud-factories such as Bank of America and Citigroup becoming “profitable” (despite the absurd rhetoric of their CEO's). All that will happen is that they will report artificially, low losses – which eventually will still have to be acknowledged if these institutions plan to EVER be taken off of government “life support”.
As I have already observed in previous pieces, “fantasy” accounting means fantasy bottom-lines. Anyone who is foolish enough to invest a penny in companies who rely upon fictional accounting to survive (even after trillions in hand-outs) deserves the mind-numbing, slaughter which awaits the shareholders of these “zombie” corporations.