Fin. Stability Plan Unveiled Today (UPDATE) | AccountingWEB

Fin. Stability Plan Unveiled Today (UPDATE)

UPDATE: Earlier today, U.S. Treasury Secretary Tim Geithner made a speech outlining the government's plan to get credit flowing again in the economy. Here is a link to the speech: Secretary Geithner Introduces Financial Stability Plan, and here is a link to the Financial Stability Plan Fact Sheet which has been posted on a new website Geithner announced that includes materials relating to the plan, at

ORIGINAL POST:Ahead of Treasury Secretary Tim Geithner’s speech slated for 11am today, at which he will unveil the Obama administration’s plan to shore up the nation’s banks and get credit flowing again, Deborah Solomon and Damian Paletta of the Wall Street Journal provided some expected details for the plan, which they say will be dubbed the Financial Stability Plan, in their article today, Banks to Get Stress Test Before Aid.

Separately, in his first prime time address as President, (see: Text of Obama’s Press Conference, Feb. 10, WSJ) President Barack Obama provided a briefing last night on the state of the economy, focusing on the economic recovery package that passed each house of Congress and now awaits a conference bill. He also spoke in general terms about the impending announcement of the bank rescue plan.

Mark-to-Market Debate Continues
We noted in our most recent post, and have covered this issue in prior posts (e.g. on some of the roundtables held last fall by the SEC and FASB on mark-to-market accounting and the credit crisis), that fair value or mark-to-market accounting is among the issues that crops up in discussions relating to the financial crisis and the bank rescue/stability plan.

Broadly speaking, there are generally two schools of thought - which may or may not necessarily be viewed as in conflict - depending where you stand: (a) that fair value (FV) or mark-to-market (MTM) accounting provides necessary transparency to toxic assets, and/or (b) that FV or MTM fuels a procyclical downward spiral in valuations of assets.

Somewhere in between, there may be a third school of thought, which may represent more of a compromise view: (c) that FV or MTM as currently constructed may contribute to an unnecessary downward spiral in valuations.

See links to some other recent articles on this subject in the Comments section here.

Snow, O'Neill Speak Out
Former Treasury Secretaries John Snow and Paul O'Neill were recently interviewed by Bloomberg News and provided their thoughts on how the bank bailout has been handled so far and recommendations for the future. O'Neill in particular is known as being outspoken, and is also known for his touring the world with U2's Bono in examining poverty and world hunger, when O'Neill served as Secretary of the Treasury. Read more here.

This blog

FEI Financial Reporting Blog provides highlights from SEC, PCAOB, FASB, IASB, and other regulatory news, including reporting under Sarbanes-Oxley Sect 404. It is written by Edith Orenstein, Director of Technical Policy Analysis at FEI

More from this blog

Bloggers crew

Steve Knowles has spent 25 years in business and practice in the UK, but he also worked in the states and the years haven't dulled his way of seeing an alternative view to everyone else, and every day is a new adventure.


Joel M. Ungar, CPA is a lifelong resident of the Detroit area and a graduate of The University of Michigan. He is a principal with Silberstein Ungar, PLLC, a Top 15 auditor of SEC public reporting companies.


Allan Boress, CPA, with over 25 years as a practitioner and consultant to the accounting profession. Mr. Boress is the author of 12 published books in 6 different languages, including a best-seller, The "I-Hate-Selling" Book.


Larry Perry, CPA, CPA Firm Support Services, LLC, is the author of accounting and auditing manuals, author and presenter of live staff training seminars, and author of webcast and self-study CPE programs. He blogs about small audits, reviews, and compilations.

Sandra Wiley, COO and Shareholder, is ranked by Accounting Today as one of the 100 Most Influential People in Accounting as a result of her prominent role as an industry expert on HR and training as well as influence as a management and planning consultant. She is also a founding member of The CPA Consultant's Alliance. Sandra is a certified Kolbe™ trainer who advises firms on building balanced teams, managing employee conflict and hiring staff.

Maria Calabrese, CIR, Human Resources manager for Fazio, Mannuzza, Roche, Tankel, LaPilusa, LLC in Cranford, New Jersey, Maria's topics revolve around the world of: Mentoring, Performance management, and The "Y Generation," a.k.a. "The whY generation".


William Brighenti is a CPA, Certified QuickBooks ProAdvisor, and Certified [Business] Valuation Analyst, operating an accounting, tax, and QuickBooks consulting firm in Hartford, Connecticut, Accountants CPA Hartford.


Ken Garen, CPA, is the co-founder and President of Universal Business Computing Company (, a software development firm of high-volume, high-productivity accounting and payroll technology.


Eva Rosenberg, MBA, EA, is the publisher of, and author of the weekly syndicated Ask TaxMama column. She provides answers to tax questions from taxpayers and tax professionals worldwide.


Amy Vetter, CPA, CITP is the CPA Programs Leader for Intacct Corporation responsible for leading the CPA/BPO Partners nationally.

Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State tax Notes entitled, "The SALT Effect." For more info, visit his website:
Scott H. Cytron, ABC, is president of Cytron and Company, known for helping companies and organizations improve their bottom line through a hybrid of strategic public relations, communications, marketing programs and top-notch client service. An accredited consultant, Scott works with companies, organizations and individuals in professional services (accounting, finance, medical, legal, engineering), high-tech and B2B/B2C product/service sales.

Rita Keller is a nationally known CPA firm management consultant, speaker, author, mentor and blogger. She has over 30 years hands-on experience in CPA firm management, marketing, technology and administrative operations.

Stacy Kildal is the mom of two fantastic kids, an Advanced Certified QuickBooks ProAdvisor, Certified Enterprise Solutions ProAdvisor, Sleeter Group Certified Consultant, a nationally recognized member of the Intuit Trainer and Writer Network, and co-host of RadioFree QuickBooks.
Michael Alter's blog specializes in providing practical advice to those who seek greater profitability and practice management tactics that enhance deeper client relationships.

Sally Glick, CMO, Principal, Marketer of the Year in 2003 and AAM Hall of Famer in 2007, leads a lively discussion of the constantly expanding roles of marketing and the professional marketers that drive this initiative in accounting firms of all sizes.


The IMA Young Professionals Blog features the insights of IMA’s Young Professionals Committee. Committee members share advice and experiences on careers, continuing education, work/life balance, and other issues affecting young accounting and finance professionals.


FEI Financial Reporting Blog provides highlights from SEC, PCAOB, FASB, IASB, and other regulatory news, including reporting under Sarbanes-Oxley Sect 404. It is written by Edith Orenstein, Director of Technical Policy Analysis at FEI.


Sue Anderson has 30 years of experience in continuing education for accountants. Currently she is the program director for online CPE provider CPE Link.


Jim Fahey is COO of Apple Growth Partners, a regional CPA firm in Ohio. His focus is on the effective and efficient use of technology within the firm by all team members.

Caleb Newquist is the Editor-in-Chief of Sift Media US, overseeing content for both AccountingWEB and Going Concern.

Leita Hart-Fanta, CPA, CGFM, and CGAP is the author of "The Yellow Book Interpreted" and owner of a website devoted to training for governmental auditors.


AccountingWEB is more than just a U.S. team of journalists and financial and technology experts - we have an international side, too! Members of our British team who publish share their ideas, insights, and perspectives from across the pond.