FASB - Financial Accountants Steal Billions?

Most folks are not familiar with FASB, but its actions and policies may have been the single greatest cause of the recent economic mess. FASB policy actions combined with media hysteria, a rookie president with oratory skills capable of whipping Congress into a rabid mob willing to vote without debate or conference on things unread and we have the makings of the greatest raid on the Treasury in the history of the United States.


According to Wikipedia The Financial Accounting Standards Board (FASB), created in 1973, is a private, not-for-profit organization whose primary purpose is to develop generally accepted accounting principles (GAAP) within the United States in the public's interest. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the U.S.


I don’t profess to understand all the ins and outs of the financial world but there is a lot of controversy over whether the FASB rules regarding ‘Mark to Market’ of assets was responsible for making it appear that banks in the USA and around the world were failing when they really weren’t. Requiring the banks to account for foreclosed assets as having no ‘market value’ made it appear that the banks were belly up. This in turn made them eligible for Billions of Dollars from the US Treasury in the TARP program.


Do you buy the theory that the banks had an asset, 4 bedrooms, 2.5 baths, 3 car garage McMansion in a gated community, that was worthless?


Will you buy the premise when the FASB changes the rule back to a previous version, that the banks are all suddenly healthy? Will you buy into the line that the bailouts and stimulus packages worked, the banks recovered, the economy recovered, when it may have been an accounting issue all along? Worse, it may have been a connived scenario to scare the country into making some dramatic changes.


Barack Obama needs to appoint a special prosecutor to look into who proposed what rules at the FASB. How were these proposals presented, did any members of Congress have any influence over what rules were used? Who at the SEC knows anything about how the banks accounted for foreclosed properties and how the FASB came up with the process? Where does the money trail lead? There is no way that Billions of dollars left the Treasury without some folks getting wealthy along the way.


A bank heist this big always has inside connections!