Reuters Insider: Goldman, Morgan Stanley’s accounting change
By Chris ClairGoldman Sachs and Morgan Stanley reportedly are considering ending mark-to-market accounting for some loan commitments, a practice which Reuters Breakingviews editors say puts them at a competitive disadvantage.
The story originally appeared in The Wall Street Journal this morning.
“It’s a little bit overblown,” Breakingviews columnist Antony Currie says of the reporting on the change. “It’s not the entire portfolio. It’s actually a very small amount they’re considering changing, and that is the loan commitments they make to investment grade companies.”
