Tag:
Assumptions
Latest Headlines
Latest Headlines
Accounting for bank profits getting tricky
Should we be nervous about second quarter profits? It's fair to say that analysts have a lot to look at now from an accounting perspective. The perception seems to be growing that all the accounting upside--nothing illegal--may eventually backfire. To take an example, if banks are allowed to book
Phantom write-ups on distressed assets
There's been a lot of talk recently about the "good news" that JPMorgan and other top banks will be able to write-up the value of distressed mortgages. The value of these write-ups across the industry could top $55 billion, according to some reports.
But The Motley Fool has cast some d
Ready for big credit card losses?
One big question about the analytical underpinnings of the stress tests: The assumed correlation between unemployment and credit card write-offs. There's no doubt there's a strong relationship. The issue is whether the slope of the line is a bit steeper in this recession, that is, will the normal
Too much optimism over stress test results?
The post-stress test relief feels a little manufactured? You get the feeling that PR folks are in cahoots on this one: Inspire good feelings by spinning the results as grand confirmation that the industry is really in decent shape. Indeed, the $75 billion the top 19 banks must raise was less than
Lose-lose for government on stress tests?
The LA Times notes the government is in a tough spot when it comes to the stress rests--the results of which have been promised for May 4. "Releasing too much information could undermine the banks' health--the very thing that the administration is trying to avoid. Revealing too little after we
Stress test result coming in two parts
The world will get a glimpse of what the vaunted stress tests are all about in two distinct parts: On April 24, Treasury will disclose the assumptions involved in the tests, which include a best case and worst case economically speaking. Banks will be able to comment at this point. May 4 marks the
