Gee, you think someone's been paying attention to The Ticker?
Check out the footnotes to Regions Financial Corp.’s latest quarterly report, and you’ll see a remarkable disclosure. There, in an easy-to-read chart, the company divulged that the loans on its books as of June 30 were worth $22.8 billion less than what its balance sheet said. The Birmingham, Alabama-based bank’s shareholder equity, by comparison, was just $18.7 billion.
So, if it weren’t for the inflated loan values, Regions’ equity would be less than zero. Meanwhile, the government continues to classify Regions as “well capitalized.”
Hmmm.... where have I seen that before?
English: We still have banks that are engaged in what amounts to accounting fraud when looked at through any sort of objective lens, but its all "ok" because we have "accounting rules" that say you can claim something is worth more than it really is.
Sheesh. Such a revelation. NOT!
I've been pounding the table on this for over two years.
I appreciate that Bloomberg is finally picking up on it, but am dismayed that this shows up under "Opinion" and not hard news, which is, of course, the correct category.
(On second thought, maybe not - 10Ks and 10Qs are now "opinions" and not "facts", right?)
Psst: Congress might want to pay attention to Elizabeth Warren, chair of the COP. I know they don't care about people like me, but Ms. Warren's saying the same thing I am: the banks are all lying.
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