factored or not factored wednesday, page-46

and the drizzle of swabprime news continues today.. and tomorrow is the day the us financials have to start valuing L3 assets at mark to market.. erk!

Bank of America Corp. cut its forecast for the dollar on concern subprime losses and a slowing economy will reduce the appeal of U.S. assets. It predicts the dollar will trade at $1.48 per euro by year-end, compared with a previous forecast of $1.44.

``U.S. subprime mortgage problems are getting worse,'' said Tetsuhisa Hayashi, chief currency trader in Tokyo at Bank of Tokyo-Mitsubishi UFJ Ltd., a unit of Japan's largest publicly traded lender by assets. ``This will inevitably affect U.S. consumption, buffeting the dollar,'' which may fall to 95 yen by year-end, he said.

Banks are facing stricter rules on valuing their so-called Level 3 assets, the most difficult to value, Hayashi added. Assets that fall into the category include mortgage-related securities and loans for leveraged buyouts, as well as private equity and real estate investments.

The Financial Accounting Standards Board's rule 157 effective Nov. 15 makes it more difficult for companies to avoid putting market prices on their hardest-to-value securities, known as Level 3 assets, Royal Bank of Scotland Group Plc's chief credit strategist Bob Janjuah wrote in a note Nov. 7.