Contemporary Auditing 10th Edition by Michael Knapp

Exercise 11

Mortgage-backed securities (MBS) produced by New Century and other major subprime lenders have been a focal point of attention during the recent financial crisis. Many parties have maintained that the mark-to-market rule for securities investments such as MBS has contributed significantly to that crisis and that the rule should be modified, suspended, or even eliminated. Briefly summarize the principal arguments of those parties opposed to the mark-to-market rule. Do you believe that those arguments are legitimate Why or why not