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These excerpts taken from the C 10-K filed Feb 27, 2009. GLOBAL CORPORATE PORTFOLIO REVIEW Corporate loans are identified as impaired and placed on a non-accrual basis (cash basis) when it is determined that the payment of interest or principal is doubtful or when interest or principal is past due for 90 days or more; the exception is when the loan is well secured and in the process of collection. Impaired corporate loans are written down to the extent that the principal is judged to be uncollectible. Impaired collateral-dependent loans are written down to the lower of cost or collateral value, less disposal costs. See “Non-Accrual Loans” on page 55 for details on the corporate non-accrual portfolio. There is no industry-wide definition of non-performing assets. As such, analysis against the industry is not always comparable. The following table summarizes corporate non-accrual loans, which are a part of the Company’s non-performing assets, and net credit losses.
Cash-basis loans on December 31, 2008 increased $7.811 billion from 2007, of which $5.457 billion was in EMEA and $1.870 billion was in North America. This increase is primarily attributable to the transfer of non-accrual loans from the held-for-sale portfolio to the held-for-investment portfolio during the fourth quarter of 2008. These loans were previously accounted for on a LOCOM basis and were transferred at their carrying value, which was net of any write-downs previously recorded. If, instead of recording direct markdowns, the loans were included in the loan balance at par and the markdowns were included in reserves, the ratio of corporate allowance for loan losses to non-accrual loans would have been approximately 100%. Cash-basis loans on December 31, 2007 increased $1.223 billion from 2006 primarily due to the impact of subprime activity in the U.K. and U.S. markets. Total corporate loans outstanding at December 31, 2008 were $175 billion compared to $186 billion at December 31, 2007. Total NCL of $1.773 billion in 2008 increased $1.102 billion from 2007, primarily due to significant write-downs reflecting the continued weakening
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GLOBAL CORPORATE PORTFOLIO REVIEW Corporate loans are identified as impaired and placed on a non-accrual basis (cash basis) when it is determined that the payment of interest or principal is doubtful or when interest or principal is past due for 90 days or more; the exception is when the loan is well secured and in the process of collection. Impaired corporate loans are written down to the extent that the principal is judged to be uncollectible. Impaired collateral-dependent loans are written down to the lower of cost or collateral value, less disposal costs. See “Non-Accrual Loans” on page 55 for details on the corporate non-accrual portfolio. There is no industry-wide definition of non-performing assets. As such, analysis against the industry is not always comparable. The following table summarizes corporate non-accrual loans, which are a part of the Company’s non-performing assets, and net credit losses.
Cash-basis loans on December 31, 2008 increased $7.811 billion from 2007, of which $5.457 billion was in EMEA and $1.870 billion was in North America. This increase is primarily attributable to the transfer of non-accrual loans from the held-for-sale portfolio to the held-for-investment portfolio during the fourth quarter of 2008. These loans were previously accounted for on a LOCOM basis and were transferred at their carrying value, which was net of any write-downs previously recorded. If, instead of recording direct markdowns, the loans were included in the loan balance at par and the markdowns were included in reserves, the ratio of corporate allowance for loan losses to non-accrual loans would have been approximately 100%. Cash-basis loans on December 31, 2007 increased $1.223 billion from 2006 primarily due to the impact of subprime activity in the U.K. and U.S. markets. Total corporate loans outstanding at December 31, 2008 were $175 billion compared to $186 billion at December 31, 2007. Total NCL of $1.773 billion in 2008 increased $1.102 billion from 2007, primarily due to significant write-downs reflecting the continued weakening
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This excerpt taken from the C 10-K filed Feb 22, 2008. GLOBAL CORPORATE PORTFOLIO REVIEW Corporate loans are identified as impaired and placed on a non-accrual basis (cash-basis) when it is determined that the payment of interest or principal is doubtful or when interest or principal is past due for 90 days or more; the exception is when the loan is well secured and in the process of collection. Impaired corporate loans are written down to the extent that principal is judged to be uncollectible. Impaired collateral-dependent loans are written down to the lower of cost or collateral value, less disposal costs. The following table summarizes corporate cash-basis loans and net credit losses:
Cash-basis loans on December 31, 2007 increased $1.223 billion from 2006, of which $1.230 billion was in Securities and Banking. The increase in Securities and Banking was primarily due to the impact of subprime activity in the U.K. and U.S. markets. Cash-basis loans on December 31, 2006 decreased $469 million from 2005; $423 million of the decrease was in Securities and Banking and $46 million was in Transaction Services. Securities and Banking decreased primarily due to the absence of cash-basis portfolios in Russia and Australia and decreases in portfolios in Poland and Korea. The decrease in Transaction Services was primarily related to decreases in Mexico. Total corporate loans outstanding at December 31, 2007 were $186 billion as compared to $166 billion at December 31, 2006. Total corporate net credit losses of $668 million in 2007 increased $586 million from 2006, primarily due to $535 million in write-offs on loans with This excerpt taken from the C 10-K filed Feb 23, 2007. GLOBAL CORPORATE PORTFOLIO REVIEW Corporate loans are identified as impaired and placed on a non-accrual basis (cash-basis) when it is determined that the payment of interest or principal is doubtful or when interest or principal is past due for 90 days or more; the exception is when the loan is well secured and in the process of collection. Impaired corporate loans are written down to the extent that principal is judged to be uncollectible. Impaired collateral-dependent loans are written down to the lower of cost or collateral value, less disposal costs. The following table summarizes corporate cash-basis loans and net credit losses:
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