The Emergency Economic Stabilization Act of 2008, enacted and signed by the President on October 3, 2008, among other things requires the Commission to conduct a study of "mark-to-market" accounting applicable to financial institutions, including depositary institutions, and submit a report to Congress with the findings and determinations within 90 days. Specifically Section 133 of the Act provides as follows:
STUDY ON MARK-TO-MARKET ACCOUNTING
1. STUDY.—The Securities and Exchange Commission, in consultation with the Board [of Governors of the Federal Reserve System] and the Secretary [of the Treasury], shall conduct a study on mark-to-market accounting standards as provided in Statement Number 157 of the Financial Accounting Standards Board, as such standards are applicable to financial institutions, including depository institutions. Such a study shall consider at a minimum—
1. the effects of such accounting standards on a financial institution's balance sheet;
2. the impacts of such accounting on bank failures in 2008;
3. the impact of such standards on the quality of financial information available to investors;
4. the process used by the Financial Accounting Standards Board in developing accounting standards;
5. the advisability and feasibility of modifications to such standards; and
6. alternative accounting standards to those provided in such Statement Number 157.
See full Article.
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