Getting Rid of "Gray Cloud" Accounting ..... What is clear in the banking world is that if their means of showing earnings had actually been transparent.....then it would be highly unlikely that the US would be turning to socialistic solutions as last resort sources of funding.... Transparent means that the holders of Company A stock....know exactly what the company has as assets....and what these assets are worth.... Third tier asset accounting allows for the holder to make up whatever valuations they see as logical to them....even with the conflicts of self compensation.... ......................................................................................... Another "Gray Cloud" are hedge funds....or any other form of public ownership....which has to invest based on "trust me"....it's really there accounting.... ......................................................................................... The solution is simple.... All vehicles utilized for publicly traded banks must be publicly traded....Thus the shares of the bank are simply a reflection of the combined value of its publicly traded underlying shares.... The same would apply to hedge funds.... ............................................................................... Banks that hold assets other than publicly traded instruments must be private . Hedge funds that hold assets other than publicly traded instruments must be private. ............................................................................. The people that choose private venues swim at their own risk.... The people that choose public venues have true visibility..... .......................................................................... Obviously when one is part of a private pool, one has chosen to do so....along with facing its risks.... ................................................................................................. Both Public/Private instruments should have size limitations with regards to particular securities such as commodities.... ........................................................................................... A possible exception for banks is that public banks could hold non public instruments when all of the officers are subject to unlimited liability.....