Mark-to-market rule reason for this mess

CFA General
#21

http://www.sec.gov/news/press/2008/2008-234.htm This just in…

#22

Pretty timely. It looks like they are going about half way.

#23

I agree with this:Plus I didnt see anyone ask for suspending it on the way up when they cashed out with the massive bonuses "Blaming fair-value accounting for the credit crisis is a lot like going to a doctor for a diagnosis and then blaming him for telling you that you are sick.’’ -Dane Mott , JPMorgan Chase & Co. bigpicture.typepad.com " Banks don’t want to lend to each other because they are not sure how much explosive dreck is in the other guy’s balance sheet. Hiding the junk isn’t going to help this at all "

#24

“Plus I didnt see anyone ask for suspending it on the way up when they cashed out with the massive bonuses” FASB 157 didn’t take effect until fiscal years beginning after 11/15/07

#25

Dsylexic Wrote: ------------------------------------------------------- > I agree with this:Plus I didnt see anyone ask for > suspending it on the way up when they cashed out > with the massive bonuses > > "Blaming fair-value accounting for the credit > crisis is a lot like going to a doctor for a > diagnosis and then blaming him for telling you > that you are sick.’’ > -Dane Mott , JPMorgan Chase & Co. > Uh, there’s the little issue of capital requirements. It’s more like going to the doctor for a diagnosis, having the doctor tell you that you are sick so you must drink poison, then going back to the doctor for a diagnosis and having him tell you that you are sick so you must drink more poison, then… > bigpicture.typepad.com > > " > Banks don’t want to lend to each other because > they are not sure how much explosive dreck is in > the other guy’s balance sheet. Hiding the junk > isn’t going to help this at all "

#26

good point.perhaps illiquid securities should be kept out of such accounting. it doesnt detract from the fact that these securities were flawed from the outset and could be kept underwraps until the rules kicked in

#27

New SEC rules say they kind of are excluded.

#28

Old Rule: VirginCFAHooker claiming on Match.com that he’s 6’1, 160 lbs and owns his own home New Rule: “Holy #!@%@ my real pictures on the web and they know I live in my parents basement”

#29

The market should mark to Chuck Norris.