- Miller Samuel Real Estate Appraisers & Consultants - https://www.millersamuel.com -

[Taking Stock] The Mother Of All Advice

The agencies who watched the US Treasury bail out the GSEs issued a joint statement [1] including:

Now everybody (the regulators) is starting to act together like a family. The statement sounded like motherly advice to the children at dinner time after a long day…

All institutions are reminded that investments in preferred stock and common stock with readily determinable fair value should be reported as available-for-sale equity security holdings, and that any net unrealized losses on these securities are deducted from regulatory capital.

In other words, I am saying this nicely, but if you make the same mistake Frannie made [2], you’re going to be spending a lot of time in your room.