Homeland Security: Now We're Talkin' Systemic; Mark-to-Market Hearing Announced by House Financial Services | AccountingWEB

Homeland Security: Now We're Talkin' Systemic; Mark-to-Market Hearing Announced by House Financial Services

Not only are the House Financial Services Committee and Senate Banking Committee holding hearings on the market meltdown and regulators’ response, the Senate’s Homeland Security and Governmental Affairs Committee (HSGAC) got into the act yesterday with its hearing on: Where Were the Watchdogs? Systemic Risk and the Breakdown of Financial Governance.

As explained in opening remarks by HSGAC Chair Sen. Joseph Lieberman (ID-CT), “We are undertaking this series of hearings pursuant to the Committee’s traditional ‘Governmental Affairs’ mission.”

However, the interest of the Homeland Affairs side of the committee also seemed apropos, given the testimony of Dr. Robert (Bob) Litan who compared the economic downturn to an ‘economic nuclear meltdown.’ Litan is vice president for Research and Policy at the Ewing Marion Kauffman Foundation and is a senior fellow in Economic Studies at the Brookings Institution.

Mark-to-Market Hearing Confirmed for March 12; Rep. Gerlach May Propose Legislation to Suspend MTM and Call for GAO Study
What had been rumored on Reuters a couple days ago is now confirmed: Late this afternoon, the House Financial Services Committee posted a link to an upcoming March 12 hearing on: Mark-to-Market Accounting: Practices and Implications. The hearing will be conducted by the Capital Markets Subcommittee, chaired by Rep. Paul Kanjorski (D-PA). Kanjorski’s subcommittee held a hearing this morning on Perspectives on Systemic Risk.

Rep. Jim Gerlach (R-PA), a member of the House Financial Services Committee, sent a letter to Treasury Secretary Tim Geithner and National Economic Council Director Larry Summers on Feb. 12, (see Gerlach letter to Geithner, Summers) with the text of a bill that Gerlach said he may propose, which would:
· Suspend mark-to-market accounting for two years, and
· Require a GAO study of mark-to-market accounting.

The blogsophere (and twittersphere?), like much of the rest of the world, is full of speculation on fair value (mark-to-market) accounting. See, e.g. Bill Sheridan’s discussion in the Maryland Association of CPA’s CPA Success Blog earlier today.

Read more about this week's (and upcoming) hearings on the credit crisis and regulatory reform 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 (www.ubcc.com), a software development firm of high-volume, high-productivity accounting and payroll technology.


Eva Rosenberg, MBA, EA, is the publisher of TaxMama.com, 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: www.leveragestateandlocaltax.com
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 Yellowbook-CPE.com 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 AccountingWEB.co.uk share their ideas, insights, and perspectives from across the pond.