People will say management had an incentive to write their assets down to little.
And still, but for the charges to write down assets and lay off workers, Donnelley would be profitable.
As banks write down assets and reduce their leverage by reining in risk-taking activities, loans will be harder for consumers and businesses to come by.
Accounting rules urge firms to write down such assets as soon as they realize they will not collect.
Widening borrowing costs, accounting rules that forced the bank to write down its assets, and rating agency downgrades that all conspired to hobble Lehman.
The bank takes a big write-down on assets, of 30% or 488 billion, reflecting their fair value.
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The carmaker said the write-down on assets totalled 4.7bn euros.
At 25% of net assets, these write downs reflect a quarter down the drain for every dollar of investor capital.
It required banks to write down the value of assets (such as long-term bonds) to market value, even if the banks intended to hold them until maturity.
But if it buys them at market prices, which are horribly depressed, other banks will have to write down the value of similar assets on their books, which could trigger more trouble.
As Citigroup faces another massive quarterly write-down of credit derivative assets, questions remain about other banks' exposures, and when the crisis goes from a trading book issue into an industrywide credit quality problem.
The big news story of the day was Hewlett-Packard (NYSE: HPQ) reporting that it had to write down a majority of intangible assets resulting from the purchase of Autonomy, a software provider.
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On one side, it must reduce its debts and it may have to write down the value of its overvalued assets further.
Sumner Redstone's company, which owns MTV Networks and Paramount Pictures, said it would be suspending salary increases for senior-level management in 2009, as well as write down the value of certain programming and other assets.
The write down needs to occur and the movement of toxic assets to the RTC at a market rate, allowing the RTC to quickly dispose of properties or renegotiate as seems best will bring stability and increased activity to the markets, including the mortgage market.
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