o.O

[solarbird]

I saw this on Naked Capitalism and thought it was a joke, but it isn't:

The action by the four banking agencies provides more favorable accounting treatment of so-called good will, an intangible asset that reflects the difference between the market value and selling price of a bank. ... Under the proposal issued this week, the regulators would permit buyers of banks and thrifts to count some of the good will toward meeting their regulatory capital requirements.

GOODWILL IS NOT FUCKING FUNGIBLE. GOODWILL IS DEFINITIONALLY NOT QUANTIFIABLE. GOODWILL IS. NOT. MONEY.

...this is Imaginationland crazy. This is Wackyland crazy. I...

Good luck.

Comments

[silussa.livejournal.com]

The FASB actually WROTE a rule allowing that?

What were they smoking that day? It SO violates the fundamentals of accounting that I don't even want to think about it.

[solarbird]

Welcome to my world of wtf. This was, hum, six months ago or so? I forget.