Additional details on talk of possible mark-to-market rule modification
Reuters reports that it might be possible to modify mark-to-market accounting rules for U.S. banks facing steep writedowns of troubled assets without abandoning the underlying accounting standard, a senior Senate Democrat said. Sen. Christopher Dodd, chairman of the Senate Banking Committee, told reporters on Wednesday evening after a panel hearing that at least one former bank regulator was discussing how to approach the difficult issue without "walking away from" mark-to-market standards. The issue of how to value distressed assets held by U.S. banks has been one of the most difficult challenges in constructing a bank rescue plan, according to industry lobbyists and lawmakers. This appears to be one of the factors contributing to today's strength.
Moody’s Will Review $302.6 Billion in Commercial Mortgage Debt Feb. 5 (Bloomberg) -- Moody’s Investors Service is reviewing the ratings of $302.6 billion in commercial mortgage-backed securities. The review encompasses 52 percent of outstanding U.S. commercial mortgage-backed debt ranked by Moody’s, the New York- based ratings company said today in a statement.
Fed's Stern says many credit sectors are still 'strained' Fed's Stern says recession likely to continue until midyear Fed Bullard says downturn likely to continue for next few months