The SEC is a weak sister, but yesterday it again joined the stupidity parade. Congress wants the SEC completely to suspend mark-to-market accounting. The SEC refused. Nevertheless, it gave Congress what it wanted by clarifying the existing mark-to-market policies. “In one clarification, the SEC said firms can use management assumptions and other factors about ‘future cash flows’ to measure the value of asset if no market exists. “In another example, the SEC said firms don’t have to take into account an asset fire-sale at another institution to measure the fair value of their own exposures.” Add it up. It says … Continue reading SEC joins the stupidity parade