But as soon as the “mark to market” rule forced banks to reveal how shaky their assets were, and reduced banks’ ability to lend money as a result, Congressman Barney Frank last year told the accountants to ignore the regulation.
Result: Banks are allowed again to make shaky loans based on shaky assets. Barney Frank is good at that game.
Retiree subsidy. Now, with the passage of the costly health-care law, companies like AT&T, Verizon, Caterpillar and John Deere are required, under other provisions of the accurate-accounting regulations, to tell their stockholders that the new law substantially reduces a federal subsidy to their retirees' health care benefits. They’ve announced that, because of the lost subsidy, the health-care law will cost the companies hundreds of millions of dollars a year.
With that, Congressman Henry Waxman demanded the CEOs of AT&T, Verizon, Caterpillar and John Deere come to Washington to explain why they told the truth.
The war on financial regulation continues.