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re: "Mark To Make Believe"

Posted on 3/5/09 at 6:02 am to
Posted by LSURussian
Member since Feb 2005
127020 posts
Posted on 3/5/09 at 6:02 am to
quote:

If banks had been held to those rules for the last 3 years, we wouldn't be where we are now.
How so? Banks were held to those rules the last three years.
This post was edited on 3/5/09 at 6:10 am
Posted by Colonel Hapablap
Mostly Harmless
Member since Nov 2003
28791 posts
Posted on 3/5/09 at 7:45 am to
No, they were allowed to have level 3 assets and mark them to a model. They SHOULD have been marking them to market every day and posting collateral as necessary. They would have been hurt much worse early on, but they'd have been forced to sell their shite paper before things really got bad.
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