FASB looks under hood of financial vehicles
The Financial Accounting Standards Board will examine how banks treat off-balance-sheet vehicles.
The Financial Accounting Standards Board will examine how banks treat off-balance-sheet vehicles, The Wall Street Journal reported.
Specifically, the Norwalk, Conn.-based will eye collateralized debt obligations and structured investment vehicles.
Robert Herz, chairman FASB, said the board is in the process of gathering information about the financial vehicles and whether current accounting rules have played a role in the country’s credit woes, according to the Journal.
Any changes the FASB might make would have a major impact on the country’s banking business since many major banks have a heavy bulk of assets in of off-balance vehicles.
Citigroup Inc., had $1.1 trillion’s worth in 2007, the Journal stated.
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