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Casper Update: Dec. 5, 2007

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The gag orders remain in effect, are wide spread and this makes things difficult. The intense disinformation games make things even more difficult. BUSH and PAULSON interference is ongoing. Try to excuse STORY and US as we attempt to pass along dependable information but sometimes fall for the daily helping of B.S..

The "holdup's" continue to be domestic in origin and most recently involve Basel II bank compliance. We hear the money center banks came into compliance at 2 p.m. Tuesday and the lesser banks have been given until Friday to comply or close, or until the 11th depending upon source. We hear that Europe and Asia could care less whether the lesser banks comply as they do no business with them (all transactions go through big banks) and they are demanding immediate deliveries and that is what we expect to happen. The decision apparently rest with the PROVOST and there remains the issue as to who he is working for, BUSH or THE CONSTITUTION. The consensus in our world says tomorrow, IMF Friday.

To the extent that Brussels has anything to do with anything, and in an attempt to help with their seemingly endless incompetence, and on behalf of all us suffering and expectant and ageing recipients, we do herewith authorize them to proceed immediately to fast track their endeavors and our deliveries by using section 45 (pg. 576&577) of the Basel II final rule SUPERVISORY FORMULA APPROACH to wit:

Subject: pgs 576 and 577

Date: Wednesday, December 05, 2007 12:15 PM

deterioration of the underlying exposures. Such features may include wind-down triggers specific to a pool of underlying exposures.

(b) Mechanics. A [bank] that elects to use the IAA to calculate the risk-based capital requirement for any securitization exposure must use the IAA to calculate the risk-based capital requirements for all securitization exposures that qualify for the IAA approach. Under the IAA, a [bank] must map its internal assessment of such a securitization exposure to an equivalent external rating from an NRSRO. Under the IAA, a [bank] must determine the risk-weighted asset amount for such a securitization exposure by multiplying the amount of the exposure (as defined in paragraph (e) of section 42) by the appropriate risk weight in Table 6 and Table 7 in paragraph (b) of section 43.

Section 45. Supervisory Formula Approach (SFA)

(a) Eligibility requirements. A [bank] may use the SFA to determine its risk-based capital requirement for a securitization exposure only if the [bank] can calculate on an ongoing basis each of the SFA parameters in paragraph (e) of this section.

(b) Mechanics. Under the SFA, a securitization exposure incurs a deduction from total capital (as described in paragraph (c) of section 42) and/or an SFA risk-based capital requirement, as determined in paragraph (c) of this section. The risk-weighted asset amount for the securitization exposure equals the SFA risk-based capital requirement for the exposure multiplied by 12.5.

(c) The SFA risk-based capital requirement. (1) If KIRB is greater than or equal to L+T, the entire exposure must be deducted from total capital.


(2) If KIRB is less than or equal to L, the exposure’s SFA risk-based capital requirement is UE multiplied by TP multiplied by the greater of:

(i) 0.0056 * T; or

(ii) S[L+T] – S[L].

(3) If KIRB is greater than L and less than L+T, the [bank] must deduct from total capital an amount equal to UE*TP*(KIRB –L), and the exposure’s SFA risk-based capital requirement is UE multiplied by TP multiplied by the greater of:

(i) 0.0056 * (T – (KIRB – L)); or

(ii) S[L+T] – S[KIRB].

(d) The supervisory formula:

(1) ⎪⎭⎪⎬⎫⎪⎩⎪⎨⎧>−⋅+−+≤=−⋅IRBKYKIRBIRBIRBIRBKYwheneKdKKYKKKYwhenYYSIRBIRB)1(20][][][)(20

(2) ()[]cbaYYbaYhYK⋅++⋅−⋅−=],1;[],;[1)1(][ββ

(3) NIRBEWALGDKh⎟⎠⎞⎜⎝⎛−=1

(4) cga⋅=

(5) )1(cgb−⋅=

(6) hKcIRB−=1

(7) 1)1(−⋅−=fccg

(8) 1000)1()1(122⋅−−⋅−+−−+=hvKKchKvfIRBIRBIRB


Now that they have been authorized to use the above simplified formula and shortcut we trust there will be no further delays from Brussels.

Two cards, a check and instructions in the package. OK to use designated bank.

Best Wishes and Merry Christmas

from the casper TEAM