Stephen H Baum Leadership

The American Bankers Association has asked the SEC to override accounting guidelines which require mark-to-market pricing for all securities, including flawed mortgage-backed securities carried on the books at asset values (prices) that are highly unlikely to be realized. The guidelines would make transparent the extent of hangover each institution has from the perfect storm of recklessness, greed and leverage. It would make possible closer to an apples-to-apples comparison of banks and their financial vulnerability. 

The ABA request apparently offers no alternative proposal which includes transparency for shareholders and customers — just a pitch to “Leave us alone.” It is purely about managing the institutions’ profits. It is one more effort to get the administration to prevent regulation and haven’t we had enough of that?

That’s just my view. What is yours?