Mark-to-market
FASB may push for expanded use of mark-to-market
Posted: March 15, 2010 by John McClelland
Today there was an interesting article in the Wall Street Journal regarding possible strengthening in mark-to-market rules. Banks have often been opposed to these rules because they are forced to write down values in times when they believe markets to be irrational, when investors flee a market based on fear. Conversely, banks may be holding loans at artificially high-values. Investors are tired of this, knowing that banks are holding some loans in la la land and are not moving forward in moving these loans and ultimately the collateral, like commercial buildings, to market. Many investors might be happy to see banks looking at their portfolios more realistically. On the other hand, can many banks find the provisions to offset the losses?
For the WSJ article, click here.