Danger: Banks Politicize Accounting

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2 Responses

  1. Scot B. says:

    Perhaps my memory is fuzzy; wasn’t it Congress who insisted on mark-to-market accounting after Enron demonstrated that mark-to-model was a sophisticated way of living on Fantasy Island?

    Also, if violating FASB guidelines gets a company into legal trouble with the SEC, doesn’t that give Congress a valid reason to care what FASB policy is?

  2. Scot may be thinking of noted Corporate America stooge Democratic congressman Kanjorski demands in 2009 that FASB change its mark-to-market approach (and indeed that first bullet by Isaac merely echoes Kanjorski and others).

    Or perhaps he is thinking of Barney Frank from just a few months ago as he was shilling for the Banks (which no doubt also helps keep the spotlight off his role with Fannie and Freddie and the whole mortgage mess)

    …and it’s not just “corporate” America; I recall Labor America being vocally aghast at changes in pension accounting just a few years ago.

    But all this shouldn’t be a problem anyway because, even if Congress does give in to the banks, surely CO hero Barack Obama will will step in and do the right thing with a veto…right?