Market to Market Accounting
Answer this question in one paragraph and include a detailed assessment of the relevant accounting issues in another paragraph. 3 paragraphs maximum. The argument is that market to market accounting caused AIG to record huge unrealized losses. These losses led to a downgrade in the quality of AIG stock. The downgrade and frozen credit markets led to eventual bailout. So, do you agree that the accounting rules (specifically Mark-to-Market) combined to AIG- demise? Locate an article on another company that experienced similar difficulties with Mark to Market. Summarize the facts and provide a citation.