BerkeleyBob

Securities and Exchange Commission and Mark to Market Changes

There has been a massive failure to accurately and transparently place a value on assets aided and abetted by the credit rating agencies and resulting in an export of securitized debt to foreign central banks and institutional fiduciaries. When the defaults triggered by deflation of the housing price bubble resulted, our reputation suffered. Mark to market is an attempt to force realistic appraisal of debt. I agree it is imperfect and may have some unanticipated consequences, but is still a step in the right direction. We require insurance carriers to carry adequate reserves for a sound policy reason. The principle is similar, and if the banks get real with disclosure, we (taxpayers) will all benefit. Hell, I might even invest in a bank again.