The above is the new SEC pronouncement on mark-to-market accounting. Not sure how this will effect the financial crisis, since no one trust anyone’s marks anyway. However, there will certainly be a tremendous amount of pressure on the Big Four accounting firms to allow banks to “write up” some of their asset backed securities. If the bailout goes through this could have a significant impact on the price that the Treasury will pay for the assets, to the upside.
A good user-friendly explanation of mark-to-market accounting can be found in the following article: