SIVs, Bank Leverage and Subprime Mortgage Crisis

11 Pages Posted: 24 Dec 2008

See all articles by Sheran Deng

Sheran Deng

American University - Kogod School of Business

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

Suggested Citation

Deng, Sheran, SIVs, Bank Leverage and Subprime Mortgage Crisis (December 22, 2008). Available at SSRN: https://ssrn.com/abstract=1319431 or http://dx.doi.org/10.2139/ssrn.1319431

Sheran Deng (Contact Author)

American University - Kogod School of Business ( email )

4400 Massachusetts Avenue NW
Washington, DC 20816-8044
United States

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