New measure may allow banks to make up their own values on toxic assets

The Federal Accounting Standards Board has moved to grant big banks more flexibility when it comes to setting values on their toxic assets. Under the new measure, set by the federal watchdog that sets standards, banks can more easily self-determine how to use mark-to-market accounting. But investors say the new measure effectively allows banks to make up their own values and is a blow to integrity. Aura Bogado speaks with John Sakowicz, general partner at Templar Advisors, host of “The Truth about Money” on NPR-affiliate KZYX, and contributing editor at the North Bay Bohemian.

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