Bank Write-Down

February 4, 2009 by · 2 Comments
Filed under: Video 

Chief Executive Officer Richard S. Berg talks about why bank write-downs are important to consumers, banks and investors.

Comments

2 Responses to “Bank Write-Down”
  1. cuOnTheOtherSide says:

    With all the talk about revoking Mark-to-Market not much in mentioned about the responsibility of the banks. They knew the rules going in. It is the same as “ignorance of the Law” as an excuse.

    Some other aspects of the conversation not mentioned.

    1. What were the assets on the books?

    2. What was the quality of the assets on the books?

    3. What was the leverage used for these assets?

    4. With all the money these guys were paid, why did they seem to have little knowledge of the risk they were taking?

    5. If they did not know or understand the risk they were taking why would you not want Mark-to-Market?

    6. How much bigger the problem could have been if there was no Mark-to-market?

    7. Not having Mark-to-Market is simply giving the banks permissions to overstate the value of assets on their books. Why would this be important to the banks?

  2. I am a novice, when it comes to the financial markets, but I do understand the concept of asset management; and my comment/question is this, if the financial “world” knows that this is a problem, that is damaging the very fabric on which our financial system is built upon, why do they, do nothing to correct the situation? Would they rather see the system collapse rather than to fix/solve the issue(s). The state of the union, at this moment demands action and not waiting until the goverment or any other source to bail out the markets; I think hard choices need to be made and soon… or else there might not be much of an america left for future generations.

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