Morgan Stanley, too, is expected to report a loss on April 22nd, largely thanks to having to mark-to-market its own debt, which has become more expensive.
Some say a solution is to suspend the mark-to-market accounting rules that have caused the cascade of write-downs in the first place.
To work our way out of the current morass, it will be necessary to relax the mark-to-market rules for banks on valuing the assets that need to be taken off of their balance sheets.
After all, our huge long-term corporate losses stem not from easy money or mark-to-market rules but largely from the incorrect short-term incentives that compensation plans give to key executives.
The Emergency Economic Stabilization Act gave the Securities and Exchange Commission the authority to suspend the mark-to-market rules, which went into effect in the fall of 2007, just in time for the credit crisis.
They must be able to suffer through further mark-to-market losses, and not have recession-sensitive jobs or businesses.
LDP's powerful committee on anti-deflation policies, and Taro Aso, the party's policy chief, they are putting the finishing touches to a bill that temporarily suspends mark-to-market accounting for banks, life insurers and 10, 000-odd listed companies.
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Paulson, the president and the SEC should also give firm orders to bank regulators to start exercising common sense with regard to their mark-to-market mania.
Or he could change accounting rules, giving banks a time out from the relentless, capital-killing mark-to-market rules that require financial firms to price their assets in an environment where no one wants them.
Someone has to cover the losses on the mark-to-market for those bonds.
The most immediate is the mark-to-market, or so-called fair-value accounting, rules that regulators have been enforcing since the early 1990s.
Further, ETFs that trade futures follow mark-to-market rules at year-end.
It was no coincidence that once Congress made it clear in early March that it wanted substantial and quick reform of mark-to-market accounting that stocks--especially those of banks and life insurance companies--vigorously rallied from their recession lows.
It is an angry book because Bill Isaac is by no means pleased with the string of policy blunders (mark-to-market accounting, pro-cyclical regulatory regimes from FASB and the SEC, the repeal of Glass-Steagall, etc.) that led to a global financial meltdown in the fall of 2008.
Just as important, the Administration must deal decisively with the insanity of mark-to-market, or so-called fair value, accounting that has forced institutions under severe pressure from regulators and accountants to maniacally mark down to absurdly low levels the value of unmarketable securities and assets, thus destroying entities that have positive cash flows.
Drew said to her understanding the OCC received daily mark-to-market updates, glossing over whether or not there were discrepancies between those reports and the information she shared with regulators.
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With the market value plummeting, he argued, mark-to-market accounting turned AIG's balance sheet into a nightmare.
So it's a safe bet that the era of American dominance will not be brought to a close by credit default swaps, mark-to-market accounting or (even) Barney Frank.
"I think the people that think mark-to-market accounting is the end-all and be-all have never tried to run a financial services company, " says Sarah Moore, chief financial officer of Alabama-based Colonial Bank.
If passive foreign investment company (PFIC) issues are involved, the amended tax returns submitted as part of the final OVDP packet will need to be modified to reflect the statutory PFIC computations (rather than the specialized mark-to-market computations within the OVDP).
The Financial Accounting Standards board labored mightily to modify one of the most destructive principles of modern times: mark-to-market accounting.
Cox has the authority to override the Financial Accounting Standards Board's insane insistence on mark-to-market accounting rules, but he has done nothing.
In May 1993, Forbes writer Toni Mack wrote a story questioning Enron's switch to "mark-to-market" accounting for its energy contracts.
More controversially, the government plans to suspend mark-to-market accounting rules, which force banks to value their holdings at market prices.
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Now he's working hard within the bureaucracy to undermine mark-to-market reform in order to force banks to go along with his scheme.
They don't like mark-to-market accounting, which has forced billions of dollars in write-downs.
If there was true mark-to-market reform we wouldn't need Geithner's plan--banks could keep the assets on their balance sheets since they'd be more realistically marked, probably around 60 cents on the dollar.
They are usually long-term investors and are not required to mark their positions to market, so they have been able to weather day-to-day fluctuations in prices better than leveraged hedge funds.
With mark-to-market (economic reporting) in Section 1256, futures traders receive a one-page Form 1099 with their realized and unrealized gains and losses for the year.
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