Mortgage/Credit Crisis Doesn't Spur Change in Banks' Ability to Hide Assets

We can almost guarantee that you didn't pause as you passed by this New York Times headline, "Accounting Board Delays an Asset Rule." That's truly a bummer. We wish this important article had this headline, "Companies Still Allowed to Hide Assets in Wake of Credit Crisis." We think that would have caught your attention.

Here's why you care: Read the article and ask yourself if this is the type of regulation that will help bring confidence to investors - and thus more investors back to Wall Street?

So now that you're asking yourself - why on earth are the Banks getting a pass for another year? The answer is essentially this: If banks had to account for all of their assets this year given how bad the market is, it would force them to raise even more cash when they are all trying to do that just to get buy.

The Washington Post has interesting quotes from the folks that decided to let the banks get by for another year. What's most interesting is how conflicted and angst ridden their comments are.

Here's another reason why you care: If it is a big deal to the reluctant rule makers, it should be a big deal to you.