NEW YORK, March 27 Banks and insurance
companies may hold off selling troubled assets into the U.S.
Treasury public-private funds on expectations they will get
relief from changes in accounting rules, according to Amherst
Proposed changes to rules that require assets be revalued
each quarter would allow market-related losses to be recorded
separately from credit losses, the analysts said. That means
write downs could be significantly less for banks, on assets
that are not likely to be sold before its value recovers.
"Banks and insurance companies have every incentive to hold
their securities and wait for accounting relief," the analysts,
led by Laurie Goodman, said in a note dated March 26.
The Financial Accounting Standards Board will hold a
meeting on its proposals on Thursday.
Even without consideration to accounting rule changes,
banks have no incentive to sell into the government program
unless its securities have already been written down, the
(Reporting by Al Yoon, Editing by Chizu Nomiyama)