NPR: Banks Get The Best Of It

NPR: Banks Get The Best Of It:

'As it stands, the new accounting rules only work when the market is inactive, like we are witnessing at the moment,' says Joshua Ronen, an accounting professor at New York University. 'When a market is irrationally exuberant the market is seen as active, so this would not apply.'

This means that banks can reap the benefits of high prices in a hot market, and limit their losses when the market dries up. Ronen calls this double standard the 'idiocy of this guidance.'

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