Excerpt from Understanding the mark-to-market meltdown
By Alex Chambers
"The marks that are coming through might be completely divorced from the ultimate cash losses. Virtually all of the losses that have been made so far have not been cash losses," says Mike Lloyd a partner at accounting firm Deloitte. "They may end up being cash losses, but they haven't at this stage. Due to fair value accounting in distressed market conditions, banks had to go out and get more capital for something that might not actually end up as cash losses."
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