|
March 25, 2009
Dear Seattle Bank Members,
We need your support. The Federal Accounting Standards Board (FASB) has issued proposed staff positions for public comment that could address important issues surrounding mark-to-market accounting. The public comment period for this issue ends April 1, 2009, and we hope that you will join us in commenting on this important issue.
The changes proposed, if approved, could help many financial institutions—including the Seattle Bank—with accounting for held-to-maturity securities. As you know, the current accounting treatment has forced the Seattle Bank to write-down certain private-label mortgage-backed securities well beyond any expected economic loss, adversely affecting our earnings and our capital.
The positions the FASB has proposed are available on the FASB Web site (www.fasb.org), and you can access them directly using the links below.
Proposed FASB Staff Position FAS 115-a, FAS 124-a, and EITF 99-20-b: Recognition and Presentation of Other-Than-Temporary Impairments
Proposed FASB Staff Position FAS 157-e: Determining Whether a Market is not Active and a Transaction is not Distressed
For your convenience in commenting, the Seattle Bank has prepared a draft comment letter that you may use as a template for sending your comments to the FASB. Simply click on the link below to access the letter on our Web site, and follow the instructions provided to submit your comments to the FASB by email.
Comment Letter
We believe that these changes are critically important for our industry and your cooperative. Because the comment period closes on April 1, we ask you to consider sending your remarks today.
Thank you for your consideration and assistance on this important issue.
Sincerely,
Richard M. Riccobono
President and CEO
|