...Alexander Bleck; Pingyang Gao ABSTRACT We study the effects of mark-to-market accounting (MTM) for banks following the originate-to-distribute lending model. Banks have expertise in originating loans, but it is costly for them to retain the loans on their books. We study how the accounting...

... requirements are sensitive to accounting reports, thereby necessitating mark-to-market accounting to implement bank regulation. Mark-to-market accounting is essential when bank leverage levels are high, and is more likely to be necessary as banks' asset risk or specificity increases. Supplemental material...

.../losses in each period are not related to stock returns over the period. Her follow-up analyses suggest that the lack of relation is due to imprecise accounting measurement of security fair values. fair value accounting mark-to-market accounting other-than-temporary...