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New Accounting Rules for Mortgage-Backed Securities
DealBook — ... said in a statement. “This will ensure that such standards are neutral and faithfully represent economic reality. To the extent that these new FASB proposals reduce the free flow of transparent and reliable financial information, they undermine investor interests and weaken their ability to make sound investment decisions.” Mr. Herz, the chairman, said he believed that the increased disclosures being required would give investors more information and that was why he supported them. Go to Article from The New York Times »

The Mark-to-Market Myth
The Baseline Scenario — ... Today the Financial Accounting Standards Board voted - by one vote - to relax accounting standards for certain types of securities, giving banks greater discretion in determining what price to carry them at on their balance sheets. The new rules were sought by the American Bankers Association, and not surprisingly will allow banks to increase their reported profits and strengthen their balance sheets by allowing them to increase the reported values of their toxic assets. ...

links for 2009-04-03
Economist's View — ... banks” versus “some banks” - Paul Krugman Is $700 billion enough? Clearing up the confusion - Keith Hennessey Credibility is key to policy success - Martin Wolf Rethinking the Japanese Experience - James Surowiecki Being Isaac Newton: Computer derives natural laws from raw data - EurekAlert Here's a stupid way to fix the banks: Change the rules! - Andrew Leonard FASB Approves New Rules on Mortgage Securities - NYTimes.com Stressed Out ...

Roosters, Thermometers and Mark-to-Market
DealBook — ... Now that the Financial Accounting Standards Board has agreed to soften the rules — much to the delight of the banking industry — analysts at Banc of America Securities bringing a new (to us, at least) simile to the debate: “Blaming the rooster for the dawn.” In their report on Friday, the analysts also suggested that the ...