Banks Say No. Too Bad Taxpayers Can’t.

[Capt. Jack]

By Gretchen Morgenson

FROM the earliest days of the credit crisis, the nation’s big financial institutions have been less than forthcoming about ballooning loan losses buried inside their books. To some degree this is understandable: denial is a powerful thing, after all, and writing off troubled loans during a period of severe stress is, for bankers, the equivalent of getting a root canal.
Related

As profits rebound at many of these institutions, however, artful dodging becomes more disturbing. And when disguising problems winds up harming the taxpayer — the same folks who rode to the rescue of banks with billions of dollars — the denial is downright exasperating.

Among the more glaring bookkeeping fictions on big banks’ balance sheets today are the values they assign to all of the bounteous second mortgage loans. doled out during the mortgage bonanza. As any realist will attest, many of these loans are worth little, and yet there they sit, at fantasy levels, on banks’ ledgers.

http://www.nytimes.com/2010/06/06/business/06gret.html?pagewanted=1

[xchrom]

1. Everything for the Banksters nothing for the People. Nt

[Capt. Jack]

2. Shameless Plug Time!

Our little website (ad-free) and at NO COST to users is making a difference!

Strength in numbers my friends!

Join the FIGHT!

http://www.foreclosurehamlet.org

[burnsei sensei]

3. The American refusal to write

off debts in bad times is part of what led to the Great Depression and ww2.
You can't get blood out of a turnip.
And I wish they would stop trying.

[BR_Parkway]

4. Actually plenty of taxpayers working under Bush/Cheney said No

and all they got was strongly worded letters

[blindpig]

5. That is the nature of our society

Capital dominates everything, everything...

[laughingliberal]

6. K & R nt