Actually the quarter was not that bad.Without the write off of the CDO's the earnings were up over 100% from 4th quarter 2007. Apparently the write off of the CDO's was necessary under the new accounting rules even though the bank has been getting timely payments and expects to in the future.This should certainly help future earnings.
Can someone explain these accounting rules for CDO's? They received 100% of payments thru 9/30/08 and 98.5% thru 12/31/2008 yet they still have to write them off...seems crazy to me. Not great news this quarter but hopefully they cleaned out all the dirt.