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Can Accounting Principles Survive the Mortgage Crisis? Looser accounting gets SEC staff approval this week, while mortgage bankers petition FASB for more breaks.

Tim Reason, CFO.com | US
January 11, 2008

Accounting for loans in default: If accounting is to be priniciple based, it seems that whoever has the ultimate exposure for loss in value of a portfolio should be taking the losses (or gains) in value.

To the extent banks are middlemen, agents of the owners who have to risks of loss, they can do what they will but no objective economic analysis can put their balance sheet at risk. They might be the agent who "reprices" the loan, but what is their risk in this repricing?

Mr. Barney Frank should confine his expertise to matters in which he has some. Accounting principles, and perhaps other principles, are not high on his list of skills. Oh, that objective self-reflection would cause him to let this issue progress without his guidance.

In that vein, I left the profession before FAS 140 and have not had to deal with it in my business life. All I can reflect on is the basics as I understand them.; Posted by GEORGE SCHIRTZINGER | Jan 21, 2008 2:14 PM ET

Principles: The principle of expediency is the primary prinicple involved.; Posted by Roland Cycan | Jan 17, 2008 1:58 PM ET

Mortgage Crisis...No Relief Yet....Good Political Drama: All this euphoria and big talks by Politicians is an indication of faulty lip service and the promises never implemented. The Mortgage companies are still sitting like fat ducks (after now 04 months) and offer no relief to ultimate consumers......as a result you will see more and amore foreclosures and heavier havoc to economy. The justice is doomed when consumers are not reached.

Can someone stop the dirty politcians and someone bring immediate relief to consumers.

My Mortgage Company Nationstar Mortgage says that till date they have not recd any such Fantisised program. It is a big joke.

They say Mortageg Industry in California is a great joke where the jumbo loan limit is low $ 417K...you cannot even buy a decent 2 car garage size house in the city like Los Ageles.

Moral of the story is:
Consumers keep suffereing and bleeding. Politicians make assess out of masses; Posted by AJAYA GUPTA | Jan 14, 2008 4:28 PM ET