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The assets they were holding do regularly trade and could easily be valued. They knew that the value was down. The problem was they didn't actually have to do
by CydeWeys 4y ago
The assets they were holding do regularly trade and could easily be valued. They knew that the value was down. The problem was they didn't actually have to do anything about it.
- tyre 4y agoBecause they planned to hold them to maturity, which meant that marking to market didn’t make much sense. Of course here it blew up, but even marked to market assets will depreciate in value if a bank tries to liquidate tens of billions of dollars worth.