William Issac, former chair of the FDIC testified before Congress on March 12th. His testimony is the most damning I have seen on the mark-to-market debate to date.
March 12, 2009
For those who want to skip the whole testimony, here is the most striking chart (click to enlarge):
Issac’s point holds as he makes valid comparisons to the S&L Crisis of the 1980’s. Had banks been forced to MTM then, claims Issac, the recession we faced then would have been far worse and the bailouts we see today would also have happened.
When markets are not functioning properly, as they are now says Issac, MTM accounting produces “terribly inaccurate” accounting results.
It is definitely worth the read
Testimony MTM House Financial Services 3-12-09-WIsaac-Final
Disclosure (“none” means no position):
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