William Isaac, former Federal Deposit Insurance Corp. (FDIC) chairman and an opponent of the mark-to-market accounting regime proposed by the Federal Accounting Standards Board (FASB), believes the recently announced proposal to expand the regulation may cause a dire and difficult situation for already struggling lenders.

FASB announced on Thursday that it will expand so-called mark-to-market accounting to loans, a rule that will require banks and other lenders to book their loans at current market value, where previously the institutions had more choice in valuing assets.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.