Smoke and mirrors revealed?
Wednesday, 7. May 2008, 21:16:10
SEC to Make Banks Reveal Capital, Liquidity Levels
The stock market, particularly financial companies, took a dive today, and I wonder how much of that was due today's announcement by the SEC.
As it clear by now from the ructions of the past year, financial institutions have been playing a shell game with the mortgage industry. This ruling should force even more nasties into the limelight - although I suspect that a legion of corporate lawyers are working right now to set up yet another dodge.
The stock market, particularly financial companies, took a dive today, and I wonder how much of that was due today's announcement by the SEC.
The U.S. Securities and Exchange Commission will require investment banks to disclose their capital and liquidity levels after the agency was criticized for regulatory failings in the wake of the Bear Stearns Cos. collapse.
As it clear by now from the ructions of the past year, financial institutions have been playing a shell game with the mortgage industry. This ruling should force even more nasties into the limelight - although I suspect that a legion of corporate lawyers are working right now to set up yet another dodge.
WIDGETIZE