Breaking news....
- Thread starter MsDoodahs
- Start date
Truth Warrior
Banned
- Joined
- Dec 3, 2007
- Messages
- 18,789
"The most dangerous man to any government is the man who is able to think things out for himself, without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane and intolerable, and so, if he is romantic, he tries to change it. And even if he is not romantic personally he is very apt to spread discontent among those who are." -- H.L. Mencken
weatherbill
Member
- Joined
- Jun 19, 2007
- Messages
- 1,113
mark to market..... caught Dave Ramsey's big article on it. He said, all they need to do is change this one rule and it will free up liquidity..... I agree with him...
simply mark to market is when banks have to write down devalued propert and mark it to market....this came in with sarbinsane-oxley........simple allow banks no t to have to do the write downs whcih shows big negatives on the books becasue of sub prime crisis and this will free up liquidity and the horded cash will come loose
simply mark to market is when banks have to write down devalued propert and mark it to market....this came in with sarbinsane-oxley........simple allow banks no t to have to do the write downs whcih shows big negatives on the books becasue of sub prime crisis and this will free up liquidity and the horded cash will come loose
C
Chester Copperpot
Guest
and it sounds like that will add to an already unstable banking system
Is that really what we want? Banks freeing up more cash, so their solvency and collateral is even more worthless?
No way. They already get to lend out $10 to the dollar, sometimes up to $30. No way. No way.
Hell, they couldn't do the power grab if they did something simple to fix things.
SEC, FASB Likely to Resist Calls to Suspend Fair-Value Rules
By Jesse Westbrook
Sept. 30 (Bloomberg) -- The U.S. Securities and Exchange Commission probably will resist calls to suspend the fair-value accounting rules that some members of Congress blame for exacerbating the global financial crisis, people familiar with the matter said.
The SEC and Financial Accounting Standards Board instead said banks should apply rules that require them to review their assets each quarter and report losses if values have declined, according to a proposal released today. A suspension isn't being considered, said the people, who declined to be identified because the plan hasn't been completed.
Congressmen, banking lobbyists and companies including American International Group Inc. have urged the SEC to place a moratorium on fair-value accounting, saying it forces firms to report losses that they never expect to incur. Federal Reserve Chairman Ben S. Bernanke and other proponents say a suspension would erode confidence that firms are owning up to losses.
``In the past couple of weeks, fair-value accounting has been under attack,'' JPMorgan Chase & Co. analyst Dane Mott wrote in a report today. ``Blaming fair-value accounting for the credit crisis is a lot like going to a doctor for a diagnosis and then blaming him for telling you that you are sick.''
SEC spokesman John Nester declined to comment. FASB spokesman Neal McGarity didn't return a phone call seeking comment.
House Rejection
Todd Tiahrt, a Kansas Republican, said the House of Representatives probably would have approved legislation authorizing a $700 billion bailout of financial companies yesterday had the measure included a suspension of fair-value. The House rejected the measure 228-205.
It would ``easily'' have passed if the rules had been suspended, Tiahrt, who opposed the legislation, said in a Bloomberg Television interview today.
Bernanke, by contrast, said in Sept. 23 testimony before the Senate Banking Committee that if regulators repeal the rules, ``nobody knows what the true mark-to-market price is.''
The SEC, in its guidance, may say companies can rely more on their own judgments, such as expected cash flows, in determining the current value of assets that aren't trading, according to today's proposal. The agency may also say that price quotes provided by brokers when markets are frozen may not be the most reliable means of determining how much securities are worth, the people said.
To contact the reporter on this story: Jesse Westbrook in Washington at [email protected].
Last Updated: September 30, 2008 16:31 EDT
Newt's article yesterday has a easy to understand description of "mark-to-market".
Suspend Mark-To-Market Now!
Suspend Mark-To-Market Now!
Similar threads
