Tim Geithner's Secret IFRS Endorsement?
Monday is a catch-all day for me over at Going Concern so I figured I'd kick my Monday off with a little globalization conspiracy and everyone's favorite: the adoption of IFRS in the US. Wooooo! Happy Monday, bitches!
Tim Geithner has inadvertently given his endorsement to standardized financial regulation around the globe, so is he also giving the adoption of IFRS in the US his approval?
Possibly, since he told ABC that “he wasn’t worried that tighter financial regulation would put U.S. banks at an international disadvantage. ‘I’m very confident we can make sure that we are working very closely to raise global standards around the world so we have a level playing field,’ Geithner said.” His motivations are only slightly suspect. Why?
Under IFRS, assets are overstated as derivatives are measured in gross exposure, as opposed to GAAP which concerns itself with net value. More magic financial reporting; of course Geithner would want to see banks magically healed by a change in accounting. If we’re going to do it, let’s also restate years 1999 – 2009 so we can compare at least.
Want the rest? I know you do. Better go over to Going Concern to get it. Quick before the Thought Police put JDA in the punishment corner.
Little do they know I like it there.