Monday Bank proposal Huge for AGM?
Proposal talks about ELIMINATING MARKET TO MARKET REPORTING. >Isn't that very beneficial for AGM as their core $.50 EPS per quarter would now be actual reported earnings (no market to market adjustments?)
Related:Fannie Mae, Freddie Mac
WASHINGTON (AP) -- Treasury Secretary Timothy Geithner and other top officials are putting the finishing touches on a plan to overhaul the government's $700 billion financial rescue program.
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FNM 0.52 0.00
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{"s" : "fnm,fre","k" : "c10,l10,p20,t10","o" : "","j" : ""} A Treasury official said Geithner will deliver a speech on Monday outlining the new plan.
But Treasury officials would not comment on reports Thursday that changes were being considered to the current accounting standard that requires banks to carry assets such as mortgage-backed securities on their books at fair value, a process known as "mark to market."
Critics of this process contend that it has made the current financial crisis worse by forcing banks to slash the value of assets that are currently depressed because of market conditions. Treasury officials said the administration's plan was not yet complete and would be revealed in Geithner's speech in Washington next week.
Some key lawmakers are examining alternatives to the current rules on marking down bank assets as a possible way to address the banking crisis.
