|
|
 | | | |
- close
- close
- close
- close
| |||||||||
This excerpt taken from the CFNL 10-Q filed Nov 7, 2008. Other-Than-Temporary Impairment
For the three months ended September 30, 2008, the Company recorded a one-time noncash other-than-temporary impairment charge of $4.4 million as a result of its investment in Fannie Mae perpetual preferred stock. This impairment charge, net of tax, was $4.0 million. The tax benefit recognized on the other-than-temporary impairment charge was based on the treatment of the impairment as a capital loss, which limited the tax benefit recorded. Subsequently, on October 3, 2008, the Emergency Economic Stabilization Act was enacted which includes a provision permitting banks to recognize the other-than-temporary impairment charge related to Fannie Mae perpetual preferred stock as an ordinary loss which will allow the Company to recognize an additional tax benefit for this loss in the fourth quarter of 2008 in the amount of $1.1 million. This noncash impairment charge was recorded in the commercial banking segment.
21
|
| |||||||
