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DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
Saturday, February 04, 2012
HOW AN ACCOUNTANT CAN CREATE $26.7 BILLION OF PROFITS
We accountants are all-powerful. With the submission of a few journal entries, Wall Street Criminal Bank accountants created $26.7 billion of profits for these fine upstanding institutions. The mouthpieces in the MSM ignore the fact that Wall Street banks aren’t really making money from banking. It’s all fake. Nothing but a show for the ignorant masses. And they believe.
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4 comments:
The pen is mightier than the sword.
The person that wrote the caption to this chart either has no idea how bank accounting works or is just trying to mislead people.
The person that wrote the caption to this chart either has no idea how bank accounting works or is just trying to mislead people.
February 4, 2012 11:21 AM
Do you have a reason for saying that or are you just opinionating?
4:18PM
Yes, I do have a reason for saying that. The chart shows how releases from loan loss reserves has boosted bank income in the past few months. The caption claims "its all fake" and that the "banks aren't really making money from banking".This is 100% false and a complete misrepresentation of the facts.
I will try and make it simple as it can get complicated. Think of loan lose reserves as a savings account. Banks place a portion of the revenue they make in a month into the "savings account". The income they place into this account is never reported in the net income figures you see in the news. They do this in order to offset future losses on loans.
If the bank feels they have to much in this "savings account" because loan quality has improved, they can reclaim some of the money they put into the account.
So in reality, this $26.7B the caption claims is "all fake" is in fact income from a previous point in time.
I am not saying this is a good practice, just that the article is 100% BS in its claims.
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