DISQUS

Mickey · 7 months ago

I would tend to favor the relaxing of the rule. The assets in question will find their true value either thru loss of nonperformance or cash flows until paid. Forcing writedowns to a nonexistent market makes no sense, plus it is having the effect of making our banks and the government partners, which will never be good. Debate can continue on this issue, and it should, but to continue the downward spiral of the banks will not serve anyone. Remember, the rule just came into effect about 16 months ago, and we did all right for the previous 70 years with a few bumps, but we survived. If I could get the government out of the banks quicker by relaxing a recently approved rule, I would jump on it. Plus, it would not take more taxpayer money or risk to allow the banks to work through the assets with the benefit of some time.