Comments on: Marking to Market http://www.bob-mcteer-blog.com/marking-to-market/ Bob McTeer's Blog Tue, 06 Jan 2009 06:10:31 +0000 http://wordpress.org/?v=2.6.2 By: jkh http://www.bob-mcteer-blog.com/marking-to-market/#comment-6748 jkh Mon, 07 Jul 2008 10:18:16 +0000 http://www.bob-mcteer-blog.com/marking-to-market/#comment-6748 Fair value accounting can be traced to the ascendance of the trading culture and its blunt influence on commercial banking. The accounting profession has been duped by the spurious precision of fast money. Match the time period over which accounting and capital implications are absorbed with the time period over which the mortgage and broader credit crisis runs its course. Disclose up front volatile asset-liability valuations for all to see, but don’t force them mindlessly and all at once into accounting results and capital calculations. Fair value accounting can be traced to the ascendance of the trading culture and its blunt influence on commercial banking. The accounting profession has been duped by the spurious precision of fast money.

Match the time period over which accounting and capital implications are absorbed with the time period over which the mortgage and broader credit crisis runs its course. Disclose up front volatile asset-liability valuations for all to see, but don’t force them mindlessly and all at once into accounting results and capital calculations.

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