[2banana]

While I agree that Level 3 asset accounting is bizarre and easy to manipulate,

Not to agree or disagree - but are you aware that the for most financial companies (MS, LEH, GS) these level II assets are greater than their entire capitalization?

[JasonC]

All financials have 20-30 times the assets and liabilities they have equity. Always have. OK, in some times past it has been 10 times. People breathing heavy about it are just being silly. Every house loan in an old times savings and loan was a level 3 asset - no quoted market, carried at cost, only reserved against as much as the bank thought might be required based on past loss experience, etc.