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Our Perspective Here's What Mike Mayo Thinks Citi Is Doing To Cook Its Books
Our Perspective Here's What Mike Mayo Thinks Citi Is Doing To Cook Its Books
| Here's What Mike Mayo Thinks Citi Is Doing To Cook Its Books |
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| Written by Steve Meyers |
| Sunday, 29 August 2010 07:34 |
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In analyst Mike Mayo's view, Citigroup needs to re-do its accounting. He thinks the profitable firm should be in the red. Mayo argues that Citi is "cooking the books," by wrongly writing off Deferred Tax Assets that legally, should appear no where on their books. In Mayo's view, Citigroup needs to take an immediate loss of some $10 billion on its DTAs (deferred tax assets), something that would place the marginally profitable bank, back in the red. Banks can use DTAs to reduce the amount of tax that they’ll need to pay in a later tax period*, as FTAlphaville puts it. But there are some restrictions as to when firms can use them. Mayo thinks Citi is in violation of those restrictions.           |
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