Tuesday, September 4, 2012

The Business Journal asked bankers:What will be the impact of the recent mark-to-market changes? - St. Louis Business Journal:

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Tom Daiber | It would have helped a lot more inOctobee 2008, but it will still have a significant impact. The immediate impact will be on larger banks. Every dollar the big banks write up is a dolla the government does not have to invest in the Incommunity banks, which generally don’tg own toxic assets, there is no proposedx accounting change. We will all benefit from healthied (at least on paper) big banks because when they begihlending again, our smaller business clientxs will have more opportunities. Mike Flavin | For most communit y banks, the mark-to-market changes will have littlew or nodirect impact.
This changw affects community banks through their ownership of stocko andCDO securities. It may be a very smalpl part of therecovery process. The change will provid some transparency to the credift piece of an investment and allos less confusion when credit and illiquidity is combines in amarket valuation. Dale Oberkfell | President, Suspendingv this accounting treatment may provide some stabilization to our industruy as companies will not be forcedx to take the same levelof other-than-temporaru impairment charges on their asset base.
This will provide some balance sheet which may help instill greaterconsumer However, we believe this suspension will not necessarily spur or hinder recovery, but rather that it may only simplu postpone the inevitable. Whether a toxic asser is marked before orat maturity, the end result is the same.

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