...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. We thank two...

... accounting mark-to-market accounting other-than-temporary impairments unrealized losses other comprehensive income financial crisis commercial banks A second reason why OTTIs may not be incrementally informative is the inability of managers...