C
Carlos O
Guest
So, lets continue on this track a little further. With mortgage backed securities and other such assets that banks have on their books with NO market, and no experiential method of even estimating a fair market value, how are these assets being marked?
Is there any room in all this for a bank or insurance company to be, perhaps, a little too optimistic in how they mark? How about a brokerage firm or mortgage broker (I'm thinking of Merrill Lynch and Washington Mutual, for example).
What are the consequences to the economy if marks are too optimistic? Is this happening now?
Are accounting standards of much value if the whole asset base is filled with AAA securities, with that rating only because they're covered by credit default swaps? Issued by AIG?
What's your take on all this?
Is there any room in all this for a bank or insurance company to be, perhaps, a little too optimistic in how they mark? How about a brokerage firm or mortgage broker (I'm thinking of Merrill Lynch and Washington Mutual, for example).
What are the consequences to the economy if marks are too optimistic? Is this happening now?
Are accounting standards of much value if the whole asset base is filled with AAA securities, with that rating only because they're covered by credit default swaps? Issued by AIG?
What's your take on all this?