It wasn't to help a recovery, it was to hide bank insolvency. The cynical view would be that GS has stolen enough in the last six months so it can now show solvency under M2M, and now they want to take down C and BOA and some of the large regional banks so they can gobble up market share. However, I have heard that BIS is applying pressure.
The only reason why M2M was suspended is because the banking sector would have imploded overnight. Fannie and Freddie will be basically insolvent, and so would most of the bigger banks. That's what happened to Bear. Most of the banks would have imploded just as quickly if M2M wasn't suspended for them. They over-leveraged that the banks had no value if the bad loans were marked to market.
I'm not sure what you're trying to say in that last post. I just proved this quote wrong with my last post. If you could, please provide some type of backup to your argument that Canadian banks don't have to adhere to mark to market rules. I think you are wrong.