wacky wednesday - 380 point gain, page-35

Just to elaborate a little - under mark to market banks have the flexibility to value the assets using a formula based on the income they pay. Using this method mortgage backed CDOs would be valued a lot more highly as most are still paying good yield. The problem may be that CEOs and CFOs feel obliged to use the most conservative valuation method as post-Enron laws have made them criminally liable for the consequences of this kind of accounting decision if it appears they are deliberately misleading investors.