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CMSA Applauds Bachus Letter on Rushed Securitization Accounting Reforms
2008-07-25 11:50:00
CMSA Applauds Bachus Letter on Rushed Securitization Accounting Reforms
Ranking Member Recommends Extended and Measured Approach for Accounting Changes NEW YORK, July 25 /EMWNews/ -- The Commercial Mortgage Securities Association (CMSA) today praised House Financial Services Committee Ranking Member Spencer Bachus (R-AL) for announcing his opposition to a year-end timeframe for changes to FASB Statement 140 and Interpretation FIN 46(R). In a letter to Christopher Cox, Chairman of the SEC, and Robert Herz, Chairman of the Financial Accounting Standards Board (FASB), Ranking Member Bachus voiced his strong opposition to making rushed and sweeping changes to these accounting rules. The Congressman recommended an extension of the deadline until January 1, 2010 to "permit all stakeholders to have a full and fair opportunity to debate all policy alternatives and their consequences." "Changing accounting standards during this period of financial stress requires full consideration of all available options to ensure a smooth transition," stated J. Christopher Hoeffel, President of CMSA and Managing Director, J.P. Morgan Chase. "The Ranking Member's approach displays a deep commitment to promoting confidence and stability in our capital markets by ensuring that major changes receive full deliberation by policymakers and market participants," he said. CMSA has long been concerned that rule changes to Statement 140 and Interpretation 46(R) will dramatically alter the market for commercial mortgage-backed securities (CMBS) and wholeheartedly supports options that can provide transparency through accounting practices, while also maintaining the viability of the marketplace. It has been CMSA's longstanding position that these issues require full deliberation over a reasonable period of time given the impact on the U.S. financial markets and borrower access to credit. "We join Ranking Member Bachus in urging FASB to take a deliberate and measured approach on any changes to these accounting rules to avoid any serious unintended consequences for the capital markets and overall economy," said Dottie Cunningham, CEO of CMSA. "We must not rush changes during this challenging time until all options and consequences are carefully considered." ABOUT CMSA Commercial Mortgage Securities Association (CMSA) is a trade association dedicated to promoting the ongoing strength, liquidity and viability of commercial real estate capital market finance worldwide. With commercial mortgage backed securities (CMBS) currently valued in excess of $900 billion, the commercial real estate capital market finance industry is a responsible, healthy and vital contributor to the overall economy. CMSA's diverse membership represents the full range of market participants including investment banks and commercial banks, rating agencies, insurance companies, service providers and investors at all levels of risk. CMSA provides a forum for continuous and timely dialogue among its members through programs that offer meaningful opportunities to address issues. CMSA acts as a voice of the marketplace encouraging the development of consensus positions and advocating before government agencies and legislators on vital concerns facing the industry. CMSA supports professional growth through a wide variety of educational and research efforts.
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