Comments on: Counterintuitive Accounting: Ambac Edition http://dmarron.com/2009/11/04/counterintuitive-accounting-ambac-edition/ Musings on Economics, Finance, and Life Thu, 24 May 2012 19:06:33 +0000 hourly 1 http://wordpress.com/ By: Geoffrey O. http://dmarron.com/2009/11/04/counterintuitive-accounting-ambac-edition/#comment-1329 Thu, 05 Nov 2009 00:29:06 +0000 http://dmarron.com/?p=2065#comment-1329 There was a push to abolish mark-to-market accounting rules when the secondary markets were frozen and banks kept having to write down the value of their securities. But watching banks suffer doesn’t make the best case to the public for changing accounting rules.

However, the Ambac case is another example of the failures of mark-to-market, and could make for a much better argument in favor of adjusting the accounting rules.

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