As mark-to-market institutions, big banks can often experience wild changes in asset values as financial markets gyrate. These swings in value are recorded as "other comprehensive income" and affect shareholder equity.
In this segment of The Motley Fool's everything-financials show Where the Money Is, banking analysts Matt Koppenheffer and David Hanson explain this concept and why it's important to bank investors.
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The article How Shareholder Gains Can Be Secretly Wiped Out originally appeared on Fool.com.
David Hanson owns shares of JPMorgan Chase. Matt Koppenheffer owns shares of Bank of America and JPMorgan Chase. The Motley Fool recommends Bank of America and Wells Fargo and owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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