I gotta love it.
First, mark to market was adjusted by FASB
Then, citi claims that it won’t have an effect.
Well, it kind of doesn’t.
In their first quarter summary, they disclose that now they are using them!
Citi adopted FASB’s recent rule changes regarding fair valuation (FAS 157) and other than temporary impairments (FAS 115). The adoption of the changes to FAS 157 had no impact on Citi’s financial results. The adoption of the changes to FAS 115 resulted in approximately $631 million pre-tax of lower impairment charges recorded in revenue in the current quarter. Additionally, the cumulative effect of the changes to FAS 115, which did not impact revenues, led to a $413 million after-tax increase in retained earnings and an offset in other comprehensive income on the balance sheet.
Haha, their CEO doesn’t even attend the conference call.
Hey, they are just trying to survive. I would imagine if you can poke them with a fork, and they wriggle like a snake, they probably are a snake, and they might bite you, but when the government is wrangling them already… the risk is mitigated a bit.
http://seekingalpha.com/article/131531-citigroup-s-horrible-conference-call
I’m still riding this bucking bronco.