SEC, the US regulator is going to restudy the rules that will make it harder for the companies to mask their debts. The decision is expected to come sometime next week.
After the collapse of the Lehman Brothers, the SEC has been trying to make fundamental changes in the guidelines as per which the companies are made to reveal to the investors the asset base. Now, they will not be allowed to write off their assets from their books.
SEC members are going to meet on September 17 and then they will be deciding what the companies will need to disclose as part of their “short-term borrowing,” and what should be made public in their “liquidity and capital resources”.
This believes the SEC, will make it easier for the investors to assess the capital resources and the actual position if a company.
SEC Chairman, Mary Schapiro had said in April that the agency will be reviewing the new set of rules and find out whether the same will be needed to help the banks prevent mishaps like the ones that happened during recession.