Gtarras

Mark-to-Market Accounting: More Rules

i have been a critic of the FASB rules (specifically 157), since i deal with them on the daily basis while calculating MTM for CDO positions. Trash in (skewed index panicky values), trash out (writedowns)... In CDO cases the trash is squared and cubed... Which means a CDO tranche, if hold-to-maturity (Bernanke laughed at definition), should be 100 cents, but its current value is 10 cents.. GREAT, IS NOT IT? So a bank (Citi, JP etc), take a billion dollar hit on MTM basis on a single CDO... Does ANYBODY care? NOT REALLY! Bernanke is STUPID!

maybe, just maybe, some of you, smart bloggers, should listen to practitioners?? at the end, we all have to deal with the destroyed trust in financial system, and a huge hole in the economy... but hey, if it makes you look SMART, and Bernanke STUPID than.. all power to ya...