The New York Times has written more flexible Accounting rules for banks and maintaining their accounts :
- Now, Banks can adjustments in their capital for helping investor to check current market value of bank loan and other fixed assets of bank .
- GAAP will not barrier for maintaining accounts . Board of directors can use their personal judgement relating to accounting decisions .
- Banks have power to degrade the financial information .
- In so many words, Herz is addressing the fact that regulators need to utilize different accounting rules than those currently in place in order to protect investors Link
- unrealized losses should be recognized on bank balance sheets but not to be reflected on income statements.Link