Is it time to start worrying about banks accounting

Tom McKay

Is it time to start worrying about banks accounting? Thomas Curry, a Washington Financial Regulator has warned that some banks seemed to have been scrimping on their allowances against their loan losses, which is a neat way of saying they may be fudging their numbers. Banks who want to show lower losses can put on blinders, at least for a while, as many did during the financial crisis. Likewise, it may be tempting for some banks to overestimate losses and create excess reserves that they can dip into later like a cookie jar when they want to show higher earnings and capital. (VIEW LINK)


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