http://www.bloomberg.com.au/apps/news?pid=20601039&refer=columnist_weil&sid=a6sv0hG.nW7g
This is how State intervention via regulation cooks the books and thus how socialism works through criminal deception to improve reputation. This is totally counter to a free market society.
First: "Under a Securities and Exchange Commission rule called Regulation G, companies that release non-GAAP financial measures are required to disclose “a reconciliation of the disclosed non-GAAP financial measure to the most directly comparable GAAP financial measure.” (The rule applies to press releases, as well as formal SEC filings.) That way, anyone can see how the numbers were calculated.
Wells didn’t do this in its March 6 release. A spokeswoman, Julia Tunis Bernard, declined to tell me the math Wells used. Silly me -- I thought the SEC’s rules apply to Wells Fargo, too."
Secondly: "Gimmick No. 4: Buried losses.
How quickly investors forget. One week before Wells’s earnings news, the FASB caved to pressure by the banking industry and passed new rules that let companies ignore large, long-term losses on the debt securities they own when reporting net income."
- The FASB is a private organization that receives legal standing from SEC (the State) and was also established by SEC (the State). Therefore this was not established by the free market standards, but by the State's own criminal standards. So above is a brief showing on how the State provides power to private organizations and thereby a crime ring given legitimacy just because the State said it's ok. lol please...
- There is much more in that article that goes into detail and has more to say not just on what was quoted above but it mainly does have to do with Wells Fargo and the State crime ring. The simple math of addition and subtraction is not being done correctly, but the State is trying to protect it's socialist reputation.
Here's yet another way the State in its' regulatory and thus interventionist leanings is undermining the free market:
http://www.campaignforliberty.com/blog.php?view=16699
"The documents released by New York state Attorney General Andrew Cuomo indicated that top US Treasury and Federal Reserve officials threatened to push out bank management and board members if the takeover were not completed."
"The documents released by Cuomo indicated Bank of America wanted to walk away in December from the deal announced in September to take over Merrill, which had been on the brink of collapse at the same time as Lehman Brothers."
Interesting developments in which the State by coercion usurps the workings of a free market.