New accounting rule lets banks hide big losses

Posted Jun 5th 2009 3:10PM by Connie Madon

With a sleight of hand, the Financial Accounting Standards Board gave banks a way of hiding their losses, at least for the time being. What was this sleight of hand? With powerful lobbying by 16 industry association groups who call themselves the Fair Value Coalition, a proposal to use "mark to market" to price the value of distressed assets was killed. Congress, it seems, bowed to the lobbyists and complained that the existing "mark to market" standards worsened the financial crisis. So what is the new rule? Who knows? Its hard to figure out exactly what standard banks are using to price distressed assets.

New accounting rule lets banks hide big losses - BloggingStocks

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