The EITF 99-20 phenomenon, which continues to cause sizeable write-downs associated with reevaluations of credit-sensitive securitized assets (residuals), has brought the elusive first-loss piece to the media front line recently.

According to published reports, companies like Bank One Corp., Lincoln National Corp., Liberty Financial and others have all reported write-downs associated with EITF 99-20. Garnering the most attention, perhaps, Citigroup reported a $116 million charge associated with the accounting change.

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