"Window Dressing" in Bank Reports: Hearing...88-1...October 2, 19631963 - 39 pages |
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Page 4
... loans , and many others . Moreover , since most nonbank statistics to which banking data must be related are end - of - month figures , variable bank reporting dates detract considerably from the suitability of banking data for analyses ...
... loans , and many others . Moreover , since most nonbank statistics to which banking data must be related are end - of - month figures , variable bank reporting dates detract considerably from the suitability of banking data for analyses ...
Page 8
... loan participations among banks . Payment is credited to the seller's account and the drafts used in payment are in transit on the statement date so that both loan and deposit totals are inflated . 5. Delayed processing of items ...
... loan participations among banks . Payment is credited to the seller's account and the drafts used in payment are in transit on the statement date so that both loan and deposit totals are inflated . 5. Delayed processing of items ...
Page 13
... loan , and to inflate my financial state- ment I borrow $ 50,000 from some friend , which I have to pay back the next day , that certainly is not moral . Yet a bank can do that , and inflate its yearly statement . I don't see anything ...
... loan , and to inflate my financial state- ment I borrow $ 50,000 from some friend , which I have to pay back the next day , that certainly is not moral . Yet a bank can do that , and inflate its yearly statement . I don't see anything ...
Page 16
... loans and debts outstanding to the Federal Reserve banks at the year- end , particularly December - the end of December - and then within a couple of days later , they reborrow . Is that a factor in window dressing ? Mr. ROBERTSON . Yes ...
... loans and debts outstanding to the Federal Reserve banks at the year- end , particularly December - the end of December - and then within a couple of days later , they reborrow . Is that a factor in window dressing ? Mr. ROBERTSON . Yes ...
Page 20
... loan with the pro- ceeds being credited to his account . After the call date the transaction . is reversed through payment of the loan . The above transactions are not uncommon just prior to or imme- diately following the traditional ...
... loan with the pro- ceeds being credited to his account . After the call date the transaction . is reversed through payment of the loan . The above transactions are not uncommon just prior to or imme- diately following the traditional ...
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Common terms and phrases
actual advertise ALLEN amendment ANDERSON assessment bank examination bank reports bank supervisory agencies bankers banking industry banking practice banking public believe BLOOM call dates certificate Chairman committee Comp Comptroller Comptroller's Congress CONKLING coordination CORNELIUS E Counsel Currency day of June December 28 December 31 deceptive Deposit Insurance Corporation depositors Director Wolcott effort engage fact FASCELL FDIC Federal Deposit Insurance Federal Reserve System financial institution FISHER going HENGREN inflated insured banks June 30 LANKFORD largest bank last business day LEGAL AND MONETARY loan MACDONALD MATAN McCLORY ment moral suasion national banks Office official condition reports practice of window problem of window published statement purpose question regulation report dates reports of condition Robert Bloom ROBERT MCCLORY ROBERTSON staff statement date statistics statute stop subcommittee supervisory authorities surprise basis surprise calls surprise dates Thank thing tion total deposits transactions troller WATSON window dressing
Popular passages
Page 6 - Alice, still panting a little, "you'd generally get to somewhere else — if you ran very fast for a long time as we've been doing." "A slow sort of country!" said the Queen. "Now, here, you see, it takes all the running you can do, to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that!
Page 34 - Institutions and trust companies subject to regulation and examination by the Comptroller of the Currency or the Board of Governors of the Federal Reserve System, or the Federal Deposit Insurance Corporation.
Page 8 - We will be happy to answer any questions that you or the members of the committee might have about our individual programs.
Page 4 - Report of Condition of XYZ State Bank * * *" published in accordance with call made by whomever it would be; instead, they relax calmly in the shelter of Federal deposit insurance. Those who are interested in the condition of a bank — such as the treasurers of corporations with millions on deposit — are seldom misled by window dressing. They know it exists and make necessary allowances, checking against the surprise reports, and often they can directly ask banks for the information they want....
Page 21 - We recently began a series of meetings with representatives of the Federal Reserve System and the Federal Deposit Insurance Corporation to discuss revisions in the call report.
Page 19 - ... purposes, but it is our view that the practice of window dressing has impaired the validity of these figures. Although surprise calls do not provide strict comparability of data, this would be less serious from a statistical viewpoint than the consequences of window dressing.
Page 5 - ... in 1962. Reports of condition were called for as of Friday, December 28, which, for most banks, was just 1 business day before the end of the year. It can be assumed that since banks are accustomed to December 31 calls, the December 28 figures were not appreciably inflated by window dressing. Most banks, particularly large banks, published not only their call reports as of December 28, 1962, as required by law. but also voluntary reports as of December 31, and the latter were in more eye-catching...
Page 4 - ... to which banking data must be related are end-of-month figures, variable bank reporting dates detract considerably from the suitability of banking data for analyses of this character. Even the accuracy of the actual data reported would be better under fixed-date reporting than under surprise calls. Bankers have repeatedly informed us that it is most difficult to reconstruct an accurate report of condition retroactively for items not regularly covered in their daily trial balances. Because of...
Page 1 - DRESSING" IN BANK REPORTS WEDNESDAY, OCTOBER 2, 1963 HOUSE OF REPRESENTATIVES, LEGAL AND MONETARY AFFAIRS SUBCOMMITTEE OF THE COMMITTEE ON GOVERNMENT OPERATIONS, Washington, DC The subcommittee met, pursuant to notice, at 9:45 am in room 100-B George Washington Inn, Hon.
Page 4 - Because of these difficulties, manv banks resort to estimating procedures that are often subiect to a troublesome margin of error. With fixed-date reporting at the midvear and yearend, banks could arrange in advance for an accurate tally for each reported item as of the reporting date. Against this background, I return to the fallacy that might be called the surprise call panacea.