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It was allowed to dispose of up to $60 billion of illiquid securities and impaired assets.
King noted though that including the Japanese might force their hand in finally marking to market impaired assets".
It said it thought some insurers had delayed recognizing unrealized investment losses this year, in hopes their impaired assets would regain value.
Mr. Gross was also a strong supporter of the troubled asset program, originally envisioned as a way to purchase impaired assets from the nation's ailing banks.
"Against the background of the steep slump in the property market and anecdotal evidence we have picked up, it may be that government officials are being a bit optimistic in their assessment of the level impaired assets.
Finally, there are the accountants, who should be integrating reporting of reserves, emissions, climate change risk and asset valuation to take account of the potential for unburnable carbon and resulting impaired assets.
Similar(10)
Instead, by guaranteeing over half a trillion pounds worth of impaired bank assets, the government is going down Japan's path and keeping zombie banks on life support.
11 A purchased credit impaired loan asset need not be placed in nonaccrual status as long as the criteria for accrual of income under the interest method in GAAP is met.
"However, state aid in the form of impaired-asset relief has to be properly remunerated and should not give undue advantages to banks".
Inability to retrieve those assets impaired recovery.
Other rules about timeframes for holding assets may apply to declaring an asset impaired.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com