What We're Hearing

I'm not an accountant (nor do I play one in this column.) However, I was talking to a mortgage banking professional recently about tax season. He told me that when he filed taxes in California, his accountant told him that the state (for tax year 2009) disallowed the use of 'net operating loss carry forward' to shelter income. His firm (which I promised not to name) earned money last year but he owned a small lender several years back that lost money. He can still use those old NOLs to shelter income -- at least he thought he could. Even though California disallowed the NOLs for 2009, the state was kind enough to extend usage by one year to 2013. The reason California banned NOLs is simple: the state is broke and needs as much revenue as it can get its hands on. Will the Golden State pull the same stunt next year? We shall see. Meanwhile, I've been holding off on commenting on the Securities and Exchange Commission's civil fraud complaint against Goldman Sachs. It's been pack journalism (to say the least) and I usually don't play that game unless I have to. But I will note this: the 'reporters' and 'anchors' on CNBC seem to be bending over backwards to dismiss the SEC's charges before a trial even commences. (Note: last night on Comedy Central Jon Stewart lambasted CNBC stock picker Jim Cramer. Go view the bit on YouTube.) But I guess that's what happens when you have a bunch of wealthy TV personalities (and not necessarily objective reporters) trying to protect their friends on the Street. (I guess it's all about government bashing and blaming 'The Man.' In this case 'The Man' is the SEC.) But I guess when you work for the 'hometown' newspaper (which is what CNBC is to Wall Street) that's what happens. I'll opine more about Goldman in my upcoming weekend column...