Investors, on the other hand do, stating that it gives them greater insight into the true present market value of a Banks' assets.
Now top U.S. lawmakers acting on behalf of their constituents, the Banks, are threatening to take action themselves if the Financial Accounting Standards Board (FASB) doesn't revise their standards. According to Banks and their lawmakers the current standards have forced Banks to record billions of dollars in asset write-downs in order to reflect the current market value of these assets. However, when the market values of assets were rocketing up to irrational highs the Bankers were more than happy to use mark-to-market accounting standards to take credit for the rising market values of these assets and then use their higher values to justify higher bonuses.
Additionally, over the last 10 years, while the mark-to-market Accounting Standard was working for the Bankers they convinced their lawmakers that it wasn't necessary for them to pay their FDIC insurance premiums. The FDIC asked for enforcement powers and the Bankers' Representatives in Congress refused to grant the FDIC the necessary powers to collect these premiums. Consequently, the FDIC is grossly under funded and in need of public funds to cover insurance losses at banks taken over by the FDIC.
Paul Kanjorskie, the Chairman of the U.S. House of Representative capital markets subcommittee, Spencer Bachus (R) on the House Financial Services Committee, and Barney Frank (D), Chairman of the House Financial Services Committee in conjunction with Securities and Exchange Commission Chairman Mary Schapiro are pushing the FASB and the SEC rule makers and regulators (independent organizations that should not be subject to political influences) to improve (read relax) their standards and regulations.
This doesn't pass the smell test.
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