To the Editor:
The modifications the Financial Standards Accounting Board made to the mark-to-market accounting rules on April 2 did indeed have little effect, because the reforms were half-way measures and did not stop the destruction of capital.
Financial institutions no longer have to run market losses through their income statements (only credit losses), but the market losses are required to be charged directly against capital.
It is clear that the FASB and SEC will not correct the highly destructive mark-to-market accounting rules unless and until Congress forces the change by creating proper oversight with respect to accounting standards.William M. Isaac
Chairman, LECG Global Financial Services
Former Chairman, FDIC