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3 Predictions for the Banking Sector (Incl. 30% Fewer Banks!)



December 17, 2009 – Comments (1) | RELATED TICKERS: BAC , C , JPM

I recently took part in a Roundtable on the future of banking in which I offered three predictions. Keep in mind that the timeframe for these predictions is 10 years -- these aren't end-of-year predictions for 2011.

Roundtable: The Future of Banking




1 Comments – Post Your Own

#1) On December 17, 2009 at 11:35 PM, FreeMortal (28.59) wrote:

Some interesting thoughts.  I guess the 64 trillion dollar question is which banks will survive and how?

"Get rid of the absolutely insane accounting rule that lets banks count the erosion of their own debt as profit. This rule literally makes it so [that] right before a bank goes bankrupt, it turns into the most profitable bank in the world. Earlier this year, Citigroup  (NYSE: C)Bank of America (NYSE: BAC) announced billions of dollars in "profits" thanks to widespread fear they were about to explode. It's the most absurd accounting rule I've ever heard of."

Can anyone explain a bit how this rule works?

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