I think from watching the Congressional hearins on changing the mark to market rules that FASBE will be recommending changes on Monday and at a minimum, changes will be made in the next several weeks. The Congressmen at the hearing seemed to be saying "Change the rules in the next three weeks or we will do it by legislation". I'm assuming that the changes being discussed will be beneficial to PRU and other financials. Any other thoughts on this? Thanks.
It doesn't matter now, it's basically too late to do anything. Looking over balance sheets, analysts have already taken into account marked losses and predicting future losses. Changing M2M won't change the way analysts define a companies strength or performance.
I think you're absolutely correct in terms of how stock analysts will view any change. The big benefit will in the world of statutory accounting which has nothing to do with stock analysis. A change will prevent negative implications arising from regulatory authorities of all sorts requiring the companies to raise more capital to meet statutory surplus and capital benchmarks. This is a point several of the Congressmen made very clearly. The mark to market rules are great if you want a transparent view of a financial company for stock investment purposes. The rules to the extent they impact statutory accounting are creating unnecessary havoc.