Friday, October 30, 2009
Financial Reform: Other Testimony
...the financial regulatory hearing had one of the most outrageous pieces of testimony that I have heard in a long time from the ABA:
Denninger: Financial Reform: Other Testimony
It is critical that banks remain committed to the long-term. For banks to provide long-term loans to, and investment in, businesses, communities, and consumers’ futures, banks must not have their loans and investments marked to prices set in markets that are panicked or are over-exuberant. These are long-term investments, not day-to-day trades. Simply put, if FASB continues its effort regarding mark-to-market, the lesson learned from this financial disaster will be that long-term loans and investments will have their valuations destroyed, and therefore the bank will be destroyed...
Denninger: Financial Reform: Other Testimony
Permalink posted by markw @ 5:10 AM 
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