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Auditors cringed, awaiting appeals of clients to let them value assets as they please.
Information on historical prices is scarce, so it is difficult to value assets.
Are there other divisions of the bank that value assets differently?
These are return on equity (net income divided by shareholders' equity) and book value (assets minus liabilities).
"They may be high value assets but that does not necessarily make them security risks," he said.
HSBC's program takes into account the different ways firms value assets by finding a common trading date.
Similar(25)
He wants to focus on those people with very large, high-value assets.
The understatements involve harder-to-value assets, mostly family-owned businesses and real estate.
Mr. Gotbaum said that in recent years, companies had ventured into hard-to-value assets.
It also has less hard-to-sell, hard-to-value assets, and more liquid securities.
Mr. Thompson estimates that at the end of September financial firms had $600 billion in such hard-to-value assets.
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