SIVs, Bank Leverage and Subprime Mortgage Crisis
11 Pages Posted: 24 Dec 2008
Date Written: December 22, 2008
Abstract
This paper explores the structure of SIVs and by exploring how they can be made off-balance-sheet but are being taken back on balance sheet under several conditions, illustrates the GAAP rules failed to capture the economic substance of certain financial transactions and associated implications in the context of recentfinancial crisis. This article uses Citigroup as the case study and also contrasts the FASB and GAAP.
Keywords: GAAP, FASB, Bank Leverage, Subprime Mortgage Crisis
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