U.S. GAAP & IFRS

The SEC is proposing that firms use International Financial Reporting Standards (IFRS) by 2014 (or sooner): http://online.wsj.com/article/SB121985665095476825.html?mod=hpp_us_whats_news.

You can see the video of this morning's open meeting at: http://www.sec.gov/news/press/2008/2008-184.htm .

For more on IFRS, check out the IASB web site: http://www.iasb.org/Home.htm

Remnants of the mortgage mess

J.P. Morgan Chase & Co. announced that it has written off more on its investment in mortgages that are Alt-A and subprime loans: http://online.wsj.com/article/SB121857659540634603.html?mod=us_business_whats_news. These write-downs are in addition to the substantial write-downs announced for the prior quarter.

Alternative-A or Alt-A mortgages are those borrowings from borrowers who are more credit-worthy than subprime borrowers, but for which there remains substantial credit risk.

In order of credit-worthiness, the ranking is:

1. Prime
2. Alternative A
3. Subprime