Banking Profits/Losses on Loans

JayHecht at aol.com JayHecht at aol.com
Sun Mar 21 14:52:41 PST 1999


In a message dated 3/21/99 4:41:14 PM Central Standard Time, jmhayes at j-o-r-d-a-n.com writes:

<<

For earnings and taxes, they don't get 'booked' until they are

realized; everything else is just a question of marking to market.

>> OK, so nothing "happens" from a financial accounting perspective, until loan losses/gains are booked.

This is the same for insurance companies, however, "owners equity" i.e. "surplus" for an insurer IS affected by stock/bond market fluctuations. Presumably (or perhaps not) a banks equity (assets-liabilities) is also affected in the same way. No?

Jason



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