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Strategies & Market Trends : 50% Gains Investing

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To: Keith Feral who wrote (65112)9/24/2008 9:10:53 AM
From: Dale BakerRead Replies (1) of 118717
 
If you take away mark to market and allow banks to claim a certain amount of reserves based on mark to maturity or mark to model, that will not convince other banks that a particular institution has enough real reserves to survive serious pressures from depositors or damage from BK's in institutions whose debt they hold in their asset base.

I suspect your idea was considered and discarded in favor of creating an actual, functioning market in distressed debt for the major players.

Just my guess from outside.
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