Mark-To-Fantasy

FASB caved in to political pressure and will allow companies to guess at market values. This will allow "assets" to be priced at fantasy levels, thus reducing required reserves and making insolvent companies appear to be solvent.
In time, people will understand the impossibility of valuing companies and investors in mark-to-fantasy companies and industries will simply leave. In the meantime, bankers are relieved they will be able to manipulate "earnings" to ensure bonuses and the stock market is due for a relief rally.


Charles Bowsher understands the FASB change will allow more fraud, and he resigns postition on Board of Directors of Federal Home Loan Banks (2nd largest borrower in USA after the Feds). Charles Bowsher was previously the USA's Comptroller General.


Honest Man Emerges From Muck of Banking Crisis: Jonathan Weil
April 2 (Bloomberg) -- Remember this man’s name: Charles Bowsher. He’s one of the few people leaving the banking crisis behind with his reputation enhanced.

Bowsher, who was comptroller general of the U.S. from 1981 to 1996, had a simple reason for resigning last week as chairman of the Federal Home Loan Bank System’s Office of Finance. He didn’t want to put his name on the banks’ combined financial statements, because he was uncomfortable vouching for them. Bowsher, 77, had held the post since April 2007.
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Office of Finance Announces Resignation of Board Chairman
The FHLBanks Office of Finance, the debt issuance facility of the Federal Home Loan Banks, announced today that Charles A. Bowsher has resigned as the private citizen member of the Office of Finance Board of Directors. ...

FHLB Chairman Disgusted With FASB Accounting Alchemy, Quits
When the man in charge of the second largest borrower in the U.S. is willing to lose his job due to his discomfort with the FASB's shift in accounting rules, you can bet that the tragic fallout of all the "market buoying" recent events is only a matter of time. ...
Charles Bowsher, who was most recently Chairman of the Federal Home Loan Bank System's Office of Finance and previously served as U.S. comptroller general may be the only truly honorable man in the socialist nexus of politics and finance. The reason for his departure from this critical post - his discomfort in vouching for the banks' combined financial statements. And as Weil puts it succinctly: "Now the question for taxpayers is this: If Charles Bowsher can’t get comfortable with these banks’ financial statements, why should anybody else be?" ...