Honestly who believes the SEC at this point? But here it is:
The Securities and Exchange Commission yesterday rejected calls by banks to suspend an accounting rule blamed for exacerbating the financial crisis, saying the "fair- value" standard should instead be improved.
"Fair-value accounting did not appear to play a meaningful role in the bank failures that occurred in 2008," the regulator said in a statement. The SEC study, ordered by Congress, recommends changing accounting for so-called impaired securities and giving companies more guidance on determining the value of investments in inactive markets
I can certainly see this being true, the shadow banking system, derivatives is the real problem.