What Do We Want? The Right to Value our Level 3 Assets However We Want! When Do We Want it? NOW!

Lots of commentary from all ends of the blogosphere about the end of mark-to-market accounting for the banks. Not exactly the most sexy topic that's out there but it's getting lots of ink because the clowns in Congress are pretty much blaming it for everything but the disappearance of Jimmy Hoffa.

As one commenter put it, "Blaming mark-to-market accounting for the banking sector's woes is like blaming a polar bear stranded on an ice flow for global warming."

Now the best part: God Goldman Sachs is saying that relaxing the rule isn't going to help investors' confidence in the banks anyway. SHEESH.

Throughout this whole dog and pony show, the oracles of double-entry accounting at the FASB really proved themselves to be spineless. Per usual modus operandi, Congress threatens to take a bigger role in overseeing accounting rules and the FASB gets nervous and ultimately bows to the wishes of BFrank, Bingo to the Max, and Ed Perlmutter, who introduced HR 1349 which would form the Financial Accounting Oversight Board, which, if enacted into law, would get to whip the shit out of the FASB whenever it wanted to.

Which I guess would be necessary because when lawmakers forget about the FASB, that allows them to sit up in CT and write rules that actually reflect some transparency. Once those rules become a problem for companies that contribute money to political campaigns, then Congress gets the torches out and beancounter witchhunt is on.

Dartboard valuation seems to be a more fun way for banks to figure out what pieces of paper are worth anyway. Sphere: Related Content