On March 16, 2009, FASB proposed allowing companies to use more leeway in valuing their assets under "mark-to-market" accounting. On April 2, 2009, after a 15-day public comment period and a contentious testimony before the U.S. House Financial Services subcommittee, FASB eased the mark-to-market rules through the release of three FASB Staff Positions (FSPs).Lamoreaux MG. (2009). FASB Approves New Mark-to-Market Guidance . Journal of Accountancy. Financial institutions are still required by the rules to mark transactions to market prices but more so in a steady market and less so when the market is inactive. To proponents of the rules, this eliminates the unnecessary "positive feedback loop" that can result in a weakened economy.FASB Eases Mark-to-Market Rules , Wall Street Journal, April 3, 2009. Retrieved January 25, 2010.
