*as someone who trades financial stocks, I would like nothing better than a moratorium, albeit temporarily, on mark to market accounting rules. Then I could sell my BAC at $9 and be gone with it. And lets face it, FASB (the accounting standards board)are a bunch of pencil pushing fascists! They make up rules arbitrarily, with no comment period from business's, ordinary CPA's etc. That being said, a moratorium would just postpone the inevitable, which is; the assets are worthless in todays marketplace, and will continue to be worthless in the future. So stop kidding yourselves. Follow Blankfeins lead and keep it in place. It is the only tool we have to force some semblance of full disclosure. Too bad it makes banks insolvent, forever.
A U.S. House Financial Services subcommittee plans a hearing on mark-to-market accounting rules, which have been blamed for forcing banks to report billions of dollars in write-downs, a source briefed on the matter told Reuters on Wednesday.
The subcommittee on capital markets has tentatively scheduled the hearing for March 12, the source said.
U.S. industry groups have pressured the SEC and FASB to significantly alter or suspend the accounting rule, saying it is is undermining the government's multibillion-dollar effort to stabilize the country's financial sector.
Mark-to-market accounting requires assets to be valued at current market prices.
Some banks say it forces them to mark down assets to artificially low prices amid the current financial crisis when banks intend to hold the assets past the current reporting period. The SEC and FASB are working on more guidance to help banks determine the value of an asset when there is little or no market trading.