When this standard was developed, the perceived abuse was a handful of banks selling securities from their investment portfolios to take gains into income, while leaving underwater securities in the portfolio. Such “cherry picking” was an abuse even under the old standards, which said investment portfolios were not to used as trading accounts.
These considerations underpin our confidence in a continuation of the economic recovery, an expectation which is mirrored by available forecasts and projections. It is also in line with financial market developments over the past few weeks. Obviously, any forward-looking assessment is subject to risks and uncertainties.