The War on GAAP

Banking analyst Gary Townsend has a good article on the dangers of "mark-to-market" accounting, which frankly, is at odds with GAAP rules that have stood the test of time. Many accountants still stand by "mark-to-market" for theoretical reasons, but it's hard to argue that the rules add transparency in an unstable market environment.

MTM rules are literally destroying the value of many solid banks - unless you believe that a bank is only worth what the assets can garner in a liquidation scenario.