Bankers Blame Accounting Rule

Mark to market accounting has made the financial crisis worse than it had to be,said Ed Yingling,CEO of the American Banking Association,an industry trade group.Around the world,there's a growing feeling that mark to market is pro-cyclical.We need to look at how collateralized debt obligations are valued.Mark to market doesn't represent the true value of assets.It is incompatible with a banking system that makes long term loans and investments,Mr.Yingling argued.The markets are completely dysfunctional.That accounting rule should not be wiping out billions of dollars worth of capital,Mr.Yingling bitterly complained.