Congress ends ‘mark to market’

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Last month, the blog supported former US Treasury Secretary Brady’s argument that ‘mark to market’ accounting rules were helping to worsen the current financial crisis. It therefore welcomes the decision by the US Financial Accounting Standards Board to revise its rules with effect from April 2. It applauds Paul Kanjorski, chair of the relevant House sub-committee, for forcing this change through so quickly.

It is less optimistic that current Treasury Secretary Geithner’s new plans for dealing with ‘toxic assets’ will work. These seem to be based on the belief that people want to buy these ‘toxic assets’, but can’t find the cash. The blog fears they are ‘toxic’, simply because they will never be repaid.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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