Banks stand to reap billions because of accounting rule

• Banks stand to reap billions because of accounting rule
  An accounting rule could allow JPMorgan Chase to benefit from bad loans it acquired when it bought Washington Mutual. Transforming the loans into income could lead to a $29 billion windfall for JPMorgan. Bank of America, Wells Fargo and other financial institutions are similarly poised to reap rewards from acquiring home lenders and their troubled loans. "It will benefit these guys dramatically," said Robert Willens, who runs a tax and accounting consulting firm in New York. "There's a great chance they'll be able to record very substantial gains going forward." Bloomberg (26 May.)

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