Just In Time For Q3 Earnings....SEC Gives Banks More Leeway On Mark-To-Market

Surprise, surprise...... Probably the worst they can do to restore confidence..... Desperation......

Passenderweise noch rechtzeitig um die Bilanzen für das 3. Quartal noch künstlich zu frisieren..... Glaube kaum das diese Bilanzakrobatik dazu beiträgt das Vertrauen in Bankenbilanzen zu stärken..... Klingt einmal mehr nach einer weiteren Verzweiflungsaktion.....

SEC gives banks more leeway on mark-to-market Reuters

"This letter (SEC document) could be titled, pick a number, any number, as it gives bankers great leeway in choosing what numbers they will give to investors," said Lynn Turner, who served as chief accountant at the SEC from 1998 through 2001

More Mark-to-Market Quotes via Calculated Risk. Barry Ritholtz has an excellent summary Understanding the Significance of Mark-to-Market Accounting. Floyd Norris from the NYT has also some thoughts on this topic Fair Value Follies & S.E.C. Move May Relax Asset Rule

Mehr zu diesem Thema via Calculated Risk Mark-to-Market Quotes und Barry Ritholtz macht nocheinmal mehr als deutlich warum diese Bilanzierungmethodik so wichtig ist Understanding the Significance of Mark-to-Market Accounting. Darüberhinaus hat sich Floyd Norris von der NYT Fair Value Follies & S.E.C. Move May Relax Asset Rule zum Thema seine Gedanken gemacht

But i fear that this is only the beginning......Take a look at Paulsons Magic Marker hidden in his bailout plan. You don´t have be a genius to assume that this "tool" will be used not very "conservatively"....

Befürchte das dies erst der Anfang ist.... Inmitten des vorerst gescheiterten Bailout Plans verbirgt sich nachfolge Passage.... Man muß kein Hellseher sein das dieses "Werkzeug" inflationär angwendet werden wird...... via Paulsons Magic Marker Ft Alphaville

Section 132. Authority to Suspend Mark-to-Market Accounting.Restates the Securities and Exchange Commission’s authority to suspend the application of Statement Number 157 of the Financial Accounting Standards Board if the SEC determines that it is in the public interest and protects investors.

Once more via Barry Ritholtz Quote of the Day: Fair Value Accounting

Wachovia went out with a book value of $75 billion. Citi paid $2 billion. Could it be that asset values are overstated, not understated?

-Michael Rapoport, Dow Jones