Thursday, June 4, 2009

CFA Involved in Criticism of Mark-to-Market Rule Change

Banks try to delay changes to off-balance-sheet accounting rule

A group of organizations from the financial-services industry sent a letter to U.S. Treasury Secretary Timothy Geithner saying changes to an accounting rule should be adopted "cautiously and seek to minimize any chilling effect on our frozen credit markets."

The changes, which could mean some companies would have to raise more capital, would force companies to move some off-balance-sheet vehicles, known as qualifying special purpose entities, onto their books. Investor groups, including the CFA Institute Centre for Financial Market Integrity, were considering their response to the banks' efforts on the off-balance-sheet and other accounting rules.