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Mani

Mani is a Senior Financial Consultant. He has worked in Senior Management role in large banking, financial and information technology organizations. He has provided solutions for major banking and securities firms across the globe in the area of retail, corporate and investment banking. He holds MBA (Finance) and Professional Management Accounting Qualifications. His hobbies are tracking global financial developments and watching sports

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    The other factor completely missing from this discussion is how that DTA’s and VA’s were accumulated in the first place. By over-estimating losses initially, making the balance sheet look poor. If they were not forced to write down paper losses, they would not have required as much “investment” from Treasury, because they would have have had a negative number on their balance sheet. Instead, they wrote down losses that never materialized and were charged 10% interest on them. Now, not only can they not pay back Treasury, they have a 100% net worth sweep taking away profits and their ability to rebuild capital buffers. Capitalism rules!

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