Mark to Market Versus Mark to Model

Executive Summary

• Mark to model accounting means that the entity that price the asset at any value that they wish.

Introduction

Private banks always want to apply mark to model accounting, rather than mark to market. This is for the same reason that Enron lobbied aggressively for mark to model accounting. Under mark to model, banks can say their assets are whatever they want them to be worth. Alan Grayson here discussed mark to model accounting.