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Politics : American Presidential Politics and foreign affairs

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To: Peter Dierks who wrote (33968)	3/11/2009 11:05:37 AM
From: DuckTapeSunroof	Read Replies (2) of 71588

Re: "clearly called for suspension of mark-to-market accounting for regulatory capital purposes." There is an argument to be made for the proposition that --- when markets are frozen or otherwise non-functional, as CDS markets are now, and significant portions of certain MBS tranches also --- that some sort of improvement to the accounting rule would be desirable... because "mark to an outlier" or "mark to NO market" likely causes more problems then it solves. On the other-hand the SEC has made clear recently that it does not want to suspend mark-to-market (I agree with that: fix but don't 'suspend'). There are several other possibilities as well. Mauldin, for one, I believe advanced an excellent suggestion for modifying Moody's and S&P's ratings methodology for asset-backed securitizations that --- IMO --- could provide most of the benefits that a suspension of mark-to-market accounting would... with little to none of the downside. Believe that Mauldin's idea might both IMPROVE the level of investor visibility and market liquidity, as well as build a more rational market structure in this area: Message 25473628

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