Mark-to-Market

Discussion in 'Economics' started by chartman, Mar 11, 2009.

  1. Schapiro appeared before the panel to make the case for the agency's budget request of $1.03 billion for the fiscal year starting in October, an increase of 9 percent from fiscal 2009.

    She also was asked about the push by the banking industry and some lawmakers to scrap the mark-to-market accounting rule that forces banks to value assets at current prices, as relief for those institutions in the financial crisis.

    "I have a lot of sympathy for" that view, Schapiro said, adding that "it is not our intention that these assets be written down to zero ... or to fire-sale prices."

    Still, the SEC doesn't advocate suspending the rule. Schapiro said it is "pushing" the Financial Accounting Standards Board to come up with new guidance for companies that will provide "a better application" for determining what assets are worth.
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    What better method of determining actual value of assets than current market value? The government was supposed to perform 'stress tests' on banks last week. What happen to that report? Was it too 'bad' to release? Is the FDIC letting numerous banks stay afloat that should be closed?
     
  2. Futures contracts MTM DAILY.. and settle up!

    Maybe more markets should work that way. If one knew his assets and liabilities would be MTM daily... THAT WOULD ELIMINATE A LOT OF STUPID SHIT!!