"Shoot the messenger. For months, that has been the mantra of some bankers who say mark-to-market accounting has made the financial crisis far worse. ... Indeed, as FASB member Thomas Linsmeier noted during this week's board's meeting, of 17 banks seized this year by the [FDIC], just 10% of their average total assets were marked to market prices. These banks were failing for reasons other than mark-to-market accounting, namely bad lending. ... But the accountants shouldn't shy away too much from battles, even if it brings politicians into the fray. Legislators on both sides of the Atlantic have begun trying to politicize accounting during the crisis", David Reilly at the WSJ, 19 December 2008.
If banks think accounting entries "deplete" their capital, they haven't a clue what their business is about.