Ice

Will the G20 Crack Down on the FASB?

Mark to Fantasy as in Fantasy Accounting Standard Board.

I have no real objects to M2F.

They only comment is shame to the bank teams and regulators who let this happen on their watch. For me this includes Greenspan - however many letters he gets posted in FT - shame on him.

Why Mark to Market?

Let's give companies a choice - per assets class they choose M2M or Mark to Fantasy.

Just one rull;
market to fantasy assets need to be specified to line level on the balance sheet.

Management can in the side letter explain why those assets bear a high value than the current market price tells them. We investor can go through the line items and make our own assessment.

Accounting firm sign off on the accurateness of the descripition of the line items - not on the Mark to Fantasy value.

Problem solved for the investors and for credit market.

Problem remains for the regular to determine solvency levels of banks. I agree with that - but at least we solved the issue for the first two domains.

Is the U.S. Banking System Safe?

may I add to the list of excellent economy writers the team from Pimco. Bill Gross and Co have been on the subject as long as John Mauldin!