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[30 Sep 2008 | No Comment | ]

Under intense political pressure, regulators for securities and accounting standards this afternoon issued what they called a “clarification” to provisions that have come under fire from bank executives and some lawmakers for contributing to the credit crisis.
Regulators said that the new guidance will help companies figure out the value of complex mortgage-related investments at a time when there are few trading partners willing to purchase them.

Our Columns »

[30 Sep 2008 | One Comment | ]

But House May Pressure Regulators
The U.S. Securities and Exchange Commission probably will resist calls to suspend the fair-value accounting rules that some members of Congress blame for exacerbating the global financial crisis, people familiar with the matter said.
The SEC and Financial Accounting Standards Board instead said banks should apply rules that require them to review their assets each quarter and report losses if values have declined, according to a proposal released today. A suspension isn’t being considered, said the people, who declined to be identified because the plan hasn’t been …

Local Media »

[30 Sep 2008 | No Comment | ]

Dow Up 4.68% Nasdaq Up 4.97% 10,850.26 Up 484.81 (4.68%)

From Blogs »

[30 Sep 2008 | One Comment | ]

As a business appraiser in a CPA firm, I see similar issues all the time. The problem is that we have conflicting definitions of the word value. The new rules essentially define value as “what you can cash out for today.” In some circumstances, this may be the important number to know, but in others, it’s more important to know the intrinsic value–the present value of what you can expect to receive from it, allowing a proper rate of return for the risk involved.
The problem occurs when readers of a …

Local Media »

[30 Sep 2008 | One Comment | ]

If regulators on their own–or Congress, if regulators fail to use their discretion–can fix 70% of the financial crisis by changing the mark-to-market accounting rule, we should change the rule first before attempting to pass another reevaluated bailout package.
“Mark-to-Market” Accounting and the Origins of the Financial Crisis: Mark-to-market accounting (also known as “fair value” accounting) means that companies must value the assets on their balance sheets based on the latest market indicators of the price that those assets could be sold for immediately. Under such a rule, declining housing prices …

Our Columns »

[30 Sep 2008 | No Comment | ]

With September coming to a close in Iraq, the number of total US Casualties reached a 5 year monthly low, and the number of hostile casualties dipped back to match the record low from August.
Total US casualties were at 25 with 8 coming from hostile fire and 17 from non-hostile activities (mostly a helicopter wreck).
Chicago numbers are still building, with 35 homicides counted up to September 21. George A. Cardenas Ward 12 has had a rash of crimes this month, currently leading in number of homicides, by my count.

From Blogs »

[30 Sep 2008 | 2 Comments | ]

What was Obama doing?
He was at a political rally then off, in his own words, to worry about his dry cleaning.
“It’s just trickling down a little bit here. That’s O.K. I’m going to have to get my dry cleaning going too.”
Maybe had Obama been more engaged, the 95 Democrats in the House who voted against the plan would have passed it.
How is it McCain’s fault? Seriously . . . Obama was staying in a luxury hotel, campaigning, and getting his dry cleaning done instead of working to get the Democrat …

Our Columns »

[30 Sep 2008 | 4 Comments | ]

Let this old House staffer veteran (circa 1958) tell you: the Speaker has the power to affect history by prudential judgment. In April, 1951 Douglas MacArthur appeared before a joint meeting (not session) of Congress to defend his record in Korea. As the world knows he delivered a stem-winding speech, respondent in his simple army jacket with 5 stars appended to his shoulder-straps. The windup “old soldiers never die” ended with a thunderclap. The applause was still ringing when the Senate trooped out and the House went back into regular …

Local Media »

[30 Sep 2008 | No Comment | ]

Members of the Congressional Black Caucus were divided on the proposed $700 billion bailout plan that failed in Congress Monday afternoon. A slight majority of CBC members voted against the plan, while a significant number voted in favor of the bailout.
In total, 21 members of the CBC opposed the bailout while 18 members supported it. The bill, called the Emergency Economic Stabilization Act of 2008, failed 228 to 205 in the House of Representatives on Monday.
Rep. Jesse Jackson called the bill “a tremendous improvement over the legislation proposed by …