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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Message: Encore Encore
As noted below, an important accounting rule change that was supposed to bring some clarity to balance sheets is most likely going to be delayed, neutered, or shelved indefinitely. Otherwise, the approval of such an accounting rule change would force at least 5 trillion in off-balance sheet assets onto the books. And we all know that honesty and clarity cannot be tolerated at any cost on Wall Street.
Looking to the Disneyland markets today, we just witnessed another day of major PPT intervention backed by 29 billion in REPOS. Simply amazing how a slight improvement in consumer confidence, most likely massaged of course, and a minor drop in crude prices could propel the DOW so vigorously. Even more amazing is that the markets just simply shrugged off the horrendous housing data and the bankruptcies of a major restaurant and a clothing chain. Kind of like a trophy moose running away from a 2 year old kid holding a pea shooter and into the direction of the crack shot hunter carrying a bazooka. Some entity is desperately trying to put lipstick on a pig as MER and the BKX Index were both up about 8% today. Perhaps ECU should forget about the great drilling results and concentrate on diluting the share base to get itself out of the doldrums?
Something of significance that did occur today is that presidential candidate Obama met with Gentle Ben. This would not seem so unusual if not for the fact that Obama just returned from his 10 day world tour and an unknown issue forced him to meet Gentle Ben face to face immediately upon his return to the U.S. One could almost speculate that something very critical and probably not positive was recently communicated to Obama?
Bravo PPT Bravo - VHF
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FASB may delay off-balance sheet accounting change
Mon Jul 28, 2008 7:19pm EDT
By Emily Chasan
NEW YORK, July 28 (Reuters) - The Financial Accounting Standards Board, under pressure from lawmakers, will reconsider its timeline for a controversial rule change that may force banks to bring trillions of dollars in off-balance sheet assets onto their books at its Wednesday meeting.
FASB, which sets U.S. accounting rules, will reconsider the rule's effective date and transition provisions, according to a schedule posted on its website.
"Additionally, the Board will consider transitional disclosures and the timing of both projects," FASB said on its website.
FASB voted in April to revamp two accounting standards known as FAS 140 and FIN 46R, to eliminate a concept known as the "qualifying special-purpose entity," or QSPE, that banks use to keep assets like mortgage-backed securities and special investment vehicles off their balance sheets.
The board is expected to release its proposal by the end of August and leave it open for public comment for 60 days. It has suggested parts of the new rule could be applied as soon as next year for companies with fiscal years beginning after Nov. 15.
Troubles in those off-balance sheet assets have been blamed for helping trigger the credit crisis. FASB members have said they believe the current rules prevented investors from understanding the true risks banks faced. Analysts have estimated the rule change could force banks to bring $5 trillion in assets onto their books.
But concerns about the rule's effect on the capital requirements at financial institutions have triggered a firestorm on Wall Street and been partially blamed for the sharp decline in shares of mortgage lenders Fannie Mae and Freddie Mac over the past month.
Some have urged FASB to slow down the rule.
"Changes to securitization accounting could have a dramatic impact on the economy, the capital markets and consumers seeking credit," Republican Rep. Spencer Bachus of Alabama said in a letter to the chairmen of FASB and the U.S. Securities and Exchange Commission last week.
Industry groups such as the American Securitization Forum and the Securities Industry and Financial Markets Association have also written FASB to say "the risks of too much haste are high."
FASB spokesman Neal McGarity has said that other regulators, not FASB, are responsible for setting capital ratios for financial institutions. He was not immediately available for comment on the board's plans.
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