Brown demands banks include bad assets
Gordon Brown has signalled his intention to force banks to include off-balance sheet liabilities in their books.
The Prime Minister, speaking to Sky News, stated that it was unacceptable that banks do not have to declare bad assets.
Brown commented that he wanted, “All companies to bring out their bad assets and put them back on their balance sheet so the financial system can move forward’.
As banks currently do not have to account for everything on their balance sheet the exact extent of their risk in the current economic climate is unclear.
Photo courtesy of World Economic Forum
