Isaac on FASB’s Mark-to-Market Proposals
By Bob McTeer Filed under Economy, Financial Crisis, Mark-to-Market on March 30, 2009 with 2 comments
Former FDIC Chairman, William Isaac, gave me permission to post his letter to the House Financial Services Committee on the FASB proposals.
Click here: [Isaac on FASB Mark to Market]
Bob,
Saw you in Dayton, OH at the R.I.S.E. conference. I just wanted to say you did a great job, and I appreciated your comments about the inadequacy of the stimulus package along with everyone else in the audience!
“BIS, paper by Ingo Fender and Martin Scheicher claims that declining risk appetite and heightened concerns about market illiquidity have provided a sizeable contribution to the observed collapse in ABX prices since July 2007. Importantly, observed ABX prices are unlikely to be good predictors of future default-related cash flow shortfalls on outstanding subprime MBS, especially for those at the higher end of the capital structure.”