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Its avoidance of questionable subprime securities left it with fewer assets to write down, and capital to acquire Bear Stearns and Washington Mutual.
For regulators and auditors to force banks to repeatedly write down the value of their regulatory capital based on an impaired market is an astonishing absurdity.
Mark-to-market accounting rules, which the government imposed in 2007, forced banks and life insurance companies to write down the value of their regulatory capital as if it were a day-trading account.
They must write down losses realistically and boost their capital (see article).
The stock fell from a high of $56 in January of this year, he said, after the bank significantly wrote down its venture capital portfolio.
ConocoPhillips advised two weeks ago it planned to write down the good-will value of some assets, as well as cut 1,300 jobs and lower capital spending by 18percentthis yearar.
But a write down could have a cosmetic effect of making it easier for H.P. to show a return on invested capital.
And those of you who are strong will receive added capital for your balance sheets, after you write down all your remaining toxic waste.
More capital enables banks to take losses as they write down or sell troubled assets.
The write-down of a capital asset is exactly that--it's a downward adjustment of the value of something the company owns.
In the autumn Better Capital wrote down the value of its investment to £20m – a figure based on how much it would recover if the business were liquidated, a process that has now begun.
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CEO of Professional Science Editing for Scientists @ prosciediting.com