Wednesday, May 16, 2012

Add Bill Fleckenstein to the list supporting ultra transparency

According to a ZeroHedge guess post, Bill Fleckenstein, agrees with the OECD on the meaninglessness of bank capital and financial reporting.

He asks how the problem could be fixed.

Regular readers know the solution is tor require banks to provide ultra transparency and disclose on an on-going basis their current asset, liability and off-balance sheet exposure details.

Bill Fleckenstein, of Fleckenstein Capital, ... says what a vast majority of us are already thinking (at least ZH readers), in that with all the accounting gimmicks, how do you even know what you own in a bank anymore? 
"The problem is, and the problem has been, that the state of accounting in the world today, financial statements and financial institutions mean nothing" 
"It's quite possible that Jamie Dimon doesn't even know what's going on, and if he doesn't know how's an outsider ever gonna know" 
"Accounting is so awful that you can never tell what you own" 
"I don't know why anyone would ever want to own a financial stock personally"
Not a particularly good sentiment if banks are trying to raise capital.

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