[L,TOWM]

LOL

Keep telling yourself that.

Or you could look at the OCC and SEC’s Rules for computing regulatory net capital. If that isn’t good enough, review ASC 820 for fair value that your assets have to get reported on.

Asserting that Municipal, Corporate, Agency, and Treasury fixed income does not get marked to market is one of the most freaking hilarious things I think I have read here!!! KUDOS TO YOU SIR! LOL

[Alberta's Child]

Banks are not required to mark their reserves to market as long as the assets are designated as HTM ("hold to maturity") reserves. They could be listed on their balance sheets at face value no matter how much their market value declined in the meantime.

The problem for banks like SVB came when depositors began withdrawing huge sums of money. Once that happened, the bank was forced to sell billions of dollars worth of those HTM assets. Not only did this mean they had to sell them at a huge loss due to rising interest rates, but once they began selling off those HTM assets they were required (under banking regulations) to re-designate their entire portfolio of those bonds from HTM to AFS ("available for sale") assets -- at current market values.

[TexasGator]

Banking experts agree. Mark to market is not required:

https://www.bing.com/search?q=bank+loan+mark+to+market&cvid=1681817f5ecb4cdb8ce9bfcd165ec08b&aqs=edge..69i57j0l8.19772j0j9&FORM=ANAB01&PC=U531

https://www.hgexperts.com/expert-witness-articles/mark-to-market-considerations-in-banking-asset-and-liability-valuation-and-bank-accounting-19644