In filings with the Securities and Exchange Commission, American Express indicated last week that it would take a $150 million ($230 million pre-tax) charge associated with the consolidation of roughly $2.0 billion in assets, tied mostly to CDOs. This is, of course, related to the implementation of FIN 46.
"Future valuation adjustments specifically related to the application of FIN 46 to the CDOs are also non-cash items, and will be reflected in the company's quarterly results until maturity," Amex stated. "As such, we would expect the aggregate gains or losses related to the CDOs, including the [July 1] charge, to reverse themselves over time as the structures mature."
Meanwhile, the International Lease Finance Corp. expects to add about $830 million to its balance sheet associated with previous aircraft sale/lease-back transactions, plus $110 million related to other VIEs.