Suspending Mark To Market Accounting: The Tale Of Two Cows – John Carney –
Let’s go to the cows.
You have two cows.
You write down on a piece of paper that the cows are worth $100 each.
You notice the cows are on fire.
Your paper still says $100. … more …
BusinessInsider @ Clusterstock
Congress Members Fume at Fair Value – Lawmakers bear down on FASB chairman Robert Herz to modify fair-value rules. – By Sarah Johnson and Marie Leone – CFO.com
1. House panel gets FASB pledge on accounting rule – (AP) – A House panel has wrung a promise from the head of an accounting board to try to issue guidelines in three weeks that will ease rules that force banks to value assets at current prices. – Moneycentral MSN
2. Accounting rule a ‘hot potato’ in Congress – Colin Barr, senior writer – Money CNN
Spank me! – Quotable Quotes: Say Bye-Bye to Mark to Market – Vinny Catalano – “Poor FASB chairman Bob Herz. Rarely has one witnessed such an ass whopping the likes of which the House’s special committee gave to FASB chairman, Bob Herz, yesterday on mark to market. The pounding came from both sides of political aisle as they told story after story of banks and businesses within their districts and how mark to market has wrecked havoc on their ability to do business
How the U.S. Banking System Was Madoffed by the FASB – Frank Rong – In 2007, the FASB, who sets the accounting rules for US companies, issued FAS Statement 157, “Fair Value Measurements” and mandated companies to adopt the rule. I believe this rule had a devastating impact on the banking industry and the overall economy. – Seeking Alpha
The FASB thinks it can “tweak” its fair-value accounting rule. In fact, if the Board makes any meaningful change to the rule at all, it will be implicitly admitting it has been a disaster. Gary Townsend explains at bankstocks.com
FASB Unlikely to Suspend Mark to Market Rules – Andy Zwikel – The debate over mark to market (or model) accounting and its role in the financial crisis made its way to Congress today. The concern is that banks will not incur the losses booked per mark to market accounting as asset values recover over time from today’s clearance sale prices. – The Balance Sheet Future Blog