ronscarpa Posted July 4, 2010 Report Share Posted July 4, 2010 Scooter Chat 07-03-10 from dont promote other sitessPost: by Rilee - zzz18:32:40 [scooter] here we go 18:32:59 [scooter] here's the signs that propell this to a stronger level this weekend 18:33:25 [scooter] June 30th ---- The Re-Boot occurred on Government Banks 18:33:34 [scooter] The MoF 18:33:47 [scooter] Jabber I think made a comment on this 18:34:01 [scooter] He also met with US Treasury Undersecretary 18:34:04 [scooter] at the same time 18:34:18 [scooter] Also, We have our wonderful senators 18:34:23 [scooter] in Iraq right now 18:34:30 [scooter] But that's the small part 18:34:35 [scooter] Photo Ops 18:34:53 [scooter] Nevertheless, it's a long weekend 18:35:04 [scooter] where internal systems are all down 18:35:50 [scooter] This is important for all the banks internally ---- particularly since They are starting essentially with a new banking system 18:36:05 [scooter] The 70% liquidity has been confirmed as well 18:36:15 [scooter] via IMF and World Bank docs ---- 18:36:22 [scooter] However, 18:36:33 [scooter] there's one other peice of information that I didn't catch 18:36:35 [scooter] before 18:36:46 [scooter] and that's the fact that Ernst and Young 18:37:12 [scooter] are doing -- or have completed the Audit early for the Rafadain and Rasheed Banks 18:37:20 [scooter] Why is this important 18:37:52 [scooter] To start from ground zero in their banking system --- The rules of engagement needed to officially written and agreed upon 18:38:10 [scooter] For example -- all the reporting on a daily weekly monthly basis 18:38:29 [scooter] In fact, I saw some information 18:38:37 [scooter] from World Bank last night that 18:38:42 [scooter] I wanted to post 18:38:52 [scooter] but I might as well show you now 18:39:18 [scooter] Give me two minutes ---- The impromptu thing is killing me here. 18:40:00 [scooter] OK 18:40:25 [scooter] The action plan for this little reform is very lengthy so we'll keep it brief 18:40:54 [scooter] Here's some statements 18:41:03 [scooter] Iii. Financing and accounting 18:41:13 [scooter] A. Restructuring the balance sheets (including inherited debts and losses) 18:41:27 [scooter] Define foreign debts of banks in accordance with the aim of reflecting the foreign debt settled in the banks’ financial statements 18:41:38 [scooter] Transfer to the Ministry of Finance or establish contra-accounts 18:41:52 [scooter] Ministry of Finance would take responsibility of part of the external debt 18:42:02 [scooter] Identify and agree on discrepancies and ways to eliminate undercapitalization of banks 18:42:10 [scooter] Monitoring of banks’ foreign assets in foreign banks and foreign correspondents 18:42:11 [scooter] Now 18:42:31 [scooter] Those are just one section of 20 that's occured 18:42:41 [scooter] But the part that was most interesting 18:42:47 [scooter] one second 18:43:38 [scooter] Please continue talking -- I need to find this and I just got to my office 18:43:38 [scooter] Please continue talking -- I need to find this and I just got to my office 18:44:16 [scooter] H. Credit Analysis and Portfolio Management 18:44:43 [scooter] Read carefully 18:44:45 [scooter] Long standing problems of portfolio quality have taken a heavy toll on the banks’ operations and financial position. The Ernst & Young asset quality reports show that loan loss reserves are largely underestimated (239 billion IQD for Rafidain Bank and 138 billion IQD for Rasheed Bank).57 In terms of capital adequacy, regulatory capital shortfalls –based on Basel II requirements and worldwide practices in terms of classification and provisioning of bad assets- may vary between 359 billion IQD for Rasheed Bank and 15.3 trillion IQD for Rafidain Bank). 58 18:45:00 [scooter] With regard to the credit administration process, several weaknesses were identified within the banks: (i) the Credit Committees do not have a charter spelling out inter alia their mission, objectives, authorization matrix;59 (ii) the banks credit functions do not forecast the cash flows generated from loan collections and do not perform a reassessment of the collateral value; the banks do not collect customers’ financial statements.60 18:45:36 [scooter] Now -- those numbers are footnotes that refer to the bottom of the page 18:45:43 [scooter] here's the footnotes 18:46:04 [scooter] Amounting to IQD 306 million and US$ 13.1 billion (18.4 % of GDP—the 2008 GDP would reach IQD 83.6 trillions, ie. US$ 71.2 billion). The capital shortfall of US$ 13.1 billion (Rafidain Bank) is based on a number of adjustments which are likely to be required. Chief among these is a difference arising from the reevaluation of assets and liabilities denominated in foreign currencies. IQD 8.33 trillion (US$ 7.1 billion) are currently recognized as an asset due from the Ministry of Finance and are included within “other assets” of the Rafidain Bank. This amount relates to 2006 and may be recognized as an expense in the income statement. 18:46:17 [scooter] 57 Amounting to US$ 204 million and US$ 117 million (IQD 1,000 = US$ 0.8521) 18:46:40 [scooter] Now --- We all know that when you remove three zeros -- that's the rate 18:46:53 [scooter] But that's the first time I have seen anything in writing 18:47:10 [scooter] It also says 18:47:23 [scooter] wait 18:47:26 [scooter] start over 18:47:38 [scooter] the rate you see there is essentially the rate we have right now 18:48:06 [scooter] But they don't refer to it as 1 dinar is equivalent to .00085 18:48:21 [scooter] They referred to it as 1000 = 18:48:46 [scooter] So I'll be digging deeper into these docs and I'll keep you apprised 18:49:28 [scooter] Now -- I that number, IMO, is considered or used 18:49:35 [scooter] just in Audit situations 18:49:52 [scooter] kind of like the MofP Website and their 1.13 rate 18:50:25 [scooter] But what's interesting is that they make the "Reevaluation" word available in the document 18:50:43 [scooter] Chief among these is a difference arising from the reevaluation of assets and liabilities denominated in foreign currencies. 18:50:52 [scooter] That's the sentence 18:51:00 [scooter] that's all I got 18:51:05 [scooter] Sorry -- Wish I had more 18:51:09 [scooter] Cya 6 Link to comment Share on other sites More sharing options...
breatheasy Posted July 4, 2010 Report Share Posted July 4, 2010 Thanks, Ron!! You are lightning fast when it comes to keeping us aprised. Great job, thanks!! Link to comment Share on other sites More sharing options...
Bobbydee Posted July 4, 2010 Report Share Posted July 4, 2010 Thanks Ron again for all your hard work keeping us informed. God Bless. Semper Fi Link to comment Share on other sites More sharing options...
RV2010 Posted July 4, 2010 Report Share Posted July 4, 2010 Thanks for the edited version. It makes it so easy to read! Happy 4th of July! Link to comment Share on other sites More sharing options...
lgraham Posted July 4, 2010 Report Share Posted July 4, 2010 Thanks Godfather!Lgraham Link to comment Share on other sites More sharing options...
ronscarpa Posted July 4, 2010 Author Report Share Posted July 4, 2010 Thanks, Ron!! You are lightning fast when it comes to keeping us aprised. Great job, thanks!! Thanks Ron again for all your hard work keeping us informed. God Bless. Semper FiThanks for the edited version. It makes it so easy to read! Happy 4th of July!Thanks Godfather! Lgraham - Cool - I like it - RRead more: Thanks Everyone for your posts and kind words. I'm blessed to be of Service to you - sincere;y...!Happy July 4th - May God bless all of you, our DV family, our Troops, anf the Iraqi People...!RON GodFather - Thanks, Lgraham 1 Link to comment Share on other sites More sharing options...
Traconesu02 Posted July 4, 2010 Report Share Posted July 4, 2010 Thanks for the post ron. Link to comment Share on other sites More sharing options...
***ucme1stnow*** Posted July 4, 2010 Report Share Posted July 4, 2010 i always appreciate what you have to say and how you say it,,thx and i look forward to hearing from you at your leisure Link to comment Share on other sites More sharing options...
gerald15 Posted July 4, 2010 Report Share Posted July 4, 2010 Thanks Ron Link to comment Share on other sites More sharing options...
mark_mich266 Posted July 4, 2010 Report Share Posted July 4, 2010 Thanks to Ron for the posting and for Scooter for getting all of us the information. Enjoy this 4th of July but be safe out there!!God Bless to all of you and the USAMark 1 Link to comment Share on other sites More sharing options...
brichards513 Posted July 4, 2010 Report Share Posted July 4, 2010 Thanks Ron for keeping us informed. And thanks for keeping up with all of Scooter's posts. His research and analysis is second to none. Nowhere else can you find the kind of SOLID information - not speculation - regarding the inner workings of our investment. We ALL owe Scooter a few cold adult beverages when the after RV party is held in Vegas! And not that I think of it - Ron you get some cold ones too! Thanks again! 2 Link to comment Share on other sites More sharing options...
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