Tuesday, January 13, 2009
SEC Wins One
"The [SEC] recommended against suspending fair-value accounting rules, instead suggesting improvements to deal with illiquid markets and reducing the number of models used to measure impaired assets. ... The banking lobby has argued that financial institutuons have been forced to write off still-valuable assets because the market for them has dried up creating a spiral of write-downs and asset sales. The report said that staff found no evidence to suggest that the accounting rules has played a significant role in the collapse of U.S. financial institutions", Michael Crittenden at the WSJ, 31 December 2008.
Even the SEC gets one right once in a while.