The Fed, now in continual panic mode, Extends Emergency Borrowing Program.
The Federal Reserve said Wednesday that it was extending its emergency borrowing program to Wall Street firms and was taking other steps to ease a tight credit market that has hobbled the national economy.
The Fed said the program, in which investment houses can tap the central bank for a quick source of cash, will be available through Jan. 30. Originally the program, started on March 17, was supposed to last until mid-September.
Another program, in which investment firms can temporarily swap more risky investments for safer Treasury securities, also will continue through Jan. 30, the Fed said. It also will let commercial banks, in a separate program, bid on cash loans that last longer — for 84 days — besides the 28-day loans now available.
FASB Postpones Off-Balance-Sheet Rule for a Year
On July 30th, FASB Postpones Off-Balance-Sheet Rule for a Year.
The Financial Accounting Standards Board postponed a measure, opposed by Citigroup Inc. and the securities industry, forcing banks to bring off-balance-sheet assets such as mortgages and credit-card receivables back onto their books.
FASB, the Norwalk, Connecticut-based panel that sets U.S. accounting standards, voted 5-0 today to delay the rule change until fiscal years starting after Nov. 15, 2009. The board needs to give financial institutions more time to prepare for the switch, FASB member Thomas Linsmeier said at a board meeting.
"We need to get a new standard into effect," Linsmeier said, though "it's not practical" to begin requiring companies to put assets underlying securitizations onto their books this year.
Citigroup's Mysterious Shadow Assets
Of that $11 trillion in total bank off balance sheet entities, Citigroup has $1.1 trillion of it. Enquiring minds may wish to consider Citigroup's $1.1 Trillion in Mysterious Shadow Assets.
http://globaleconomicanalysis.blogspot.com/2008/08/not-practical-to-tell-truth.html