Last Updated on April 2, 2009 by stlplace
(Update Apr 2). April Fool’s day was yesterday but Financial Fool’s day continues. FASB just lifted the strict mark to marke rule (business week; market watch).
(Original) This is NOT what I am saying, but this is essentially the bankers and their friends in congress are saying these days. Tomorrow FASB will vote on fasb 157 E. Note the (in)famous House Financial Service Committee (headed by Mr. Barney Frank, the same committee grilled Mr. Liddy on AIG bonus) had a hearing on “Mark to Market” accounting rule a few weeks ago. In the hearing some lawmakers pushed for changes.
The fat cats in Wall Street has enjoyed the upside of the “Mark to Market” (M2M) rule in past few years, collecting billions of dollars when the time was good. Now they are saying this M2M rule is unfairly reflecting the value of bad loans, hurting the capital of banks, and thus hurting the economy. Why did not we hear all these arguments when they were collecting all the money? Essentially they are saying they like the excitement of ONS, but they don’t like (getting) AIDs? Why don’t they stay away from ONS at the first place?