Mark to Market

Wall Street scored again today by getting the Securities & Exchange Commission (SEC) in the US to suspend its mark-to-market accounting rule. This allows the banks to carry their toxic assets, and for that matter, any questionable assets, at just about any costs they wish. This further allows the banks to sell their toxic assets at artificially high prices to the new Public-Private Investment Program under the Geithner's plan. Shareholders of banks, bank managements and fund managers who buy those toxic assets would gain, taxpayers lose.