Investor concern about Wachovia intensified on Friday after JPMorgan said it would take a $31 billion write-down on loans it acquired when it took over Washington Mutual Inc's banking unit on Thursday.
One of the biggest issues facing anybody with an interest in the financial sector is this: what is the actual value of the company? Mark to market forces a company to acknowledge reality by providing market determined prices for its assets. The idea that the SEC needs to study mark to market is ludicrous. What is essentially being asked is "how much can we lie to shareholders about the value of our assets?"
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