But that’s not all. Citigroup actually employed creative but legal accounting tactics (or rather gimmicks) to increase its reported earnings. Using “Credit Value Adjustment”, Citigroup actually added a cool $2.7 billion to the company’s bottom line for the quarter which appeared on the accounting book as “net income”. In a nutshell, Citigroup’s debt has lost value in the bond market because of concerns about the company’s financial health. However under accounting rules (it’s legal dude), Citigroup was allowed to book a one-time gain approximately equivalent to that decline because, in theory, it could buy back its debt cheaply in the open market. Of course Citigroup did not actually buy its debt but who cares.
Citigroup also took advantage of beneficial changes in accounting rules related to toxic securities that have not traded in months – they (the banks) now can book only a “portion of the loss” from the value of certain “impaired assets” as compared to “full loss” previously. Citigroup actually saw a sudden surge of $413 million after-tax profits by doing so. Citigroup also allocate a smaller amount for NPL (non-performing-loans) hence putting more money as “profit”. Desperate time requires desperate measures but it’s equally important for you to know the truths so that you won’t get carry away with the accounting creativity. Talk about creativity, it’s amazing how much the new PM Najib has learned and applied it in his political survival series.
Make no mistake about it. Najib’s propaganda and slogan “One-Malaysia” didn’t work as according to the plan, thanks to extreme factors from government-controlled Utusan Malaysia and certain extremist politicians. Najib and his mentor Mahathir are probably still putting all the jigsaw puzzles to the blue-print and framework to ensure UMNO’s relevance and survival come next general election. Najib’s “One-Malaysia” concept is actually an excellent and creative piece of art, if today was the year 1980(s), the decade when Mahathir rules the land. Unfortunately just like Chinese Feng Shui, Mahathir’s Midas-Touch has reached its expiry date. Everyone is waiting eagerly if the legendary Mahathir would help his Najib in the coming by-election campaign in Penanti. But it seems Najib is playing safe by announcing that his government may chicken-out from the by-election after all.
Despite what many claims, it’s untrue that the new PM has lost his guts for refusing to meet the opposition inside the ring for the fight. After losing the two Bukits by-election Najib was actually trying to save public money, at least that was what the BN’s media is drumming. It was indeed a brave move *grin* by Najib as he was willing to be booed in exchange for millions of dollars saved by refusing to go to the battle, never mind it was actually the police that had used 5 (five) to 20 (twenty) times the money as compared to Election Commission for each of the previous 5 by-elections. For example while Election Commission only used RM580,000 the police actually used a whopping RM11.5 million in Kuala Terengganu by-election. The creative reason for Najib’s refusal to enter the ring for Penanti by-election – it was opposition’s political ploy *huh?*. This is both laughable and puzzling considering that this is the chance for BN to wrestle back the seat from the opposition unless of course, BN has zero confidence. This is perhaps the first time in the history of the country that the ruling government is not participating in a by-election.
Najib’s creativity has taken another level when it was learned that all the government-controlled TVs are prohibited from mentioning the PM’s name, his wife’s name and even his adviser Razak Baginda in relation to Mongolian beauty Altantuya’s murder. Nevertheless nothing beats the creativity of Election Commission when it was reported
Other Articles That May Interest You …
- Beats Earnings – Blinded by Excessive Low Expectation
- The Worst is Not Over Yet but We Can Survive, only if …
- Thailand’s Turmoil – 8 Reasons Why it Won’t Happen Here
- Mahathir-Najib Cabinet, Losers but Cronies are Welcome
- Bukits for PR, Batang for BN – What does it Means?
- “One Malaysia” – April Fool’s Slogan to Fool You Again?