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Robert Rubin, who quit his post as senior counselor at Citigroup Inc. this month, said an accounting rule forcing companies to mark down assets every quarter to reflect market value has "done a great deal of damage."
"I spent my whole life at Goldman Sachs believing in mark- to-market accounting, and having said that, if you look at the experience from the last two years, I think mark-to-market accounting has led to terrible vicious cycles in asset prices," Rubin, the former U.S. Treasury secretary, said during a discussion at the 92nd St. YMCA late yesterday.

Yes, because it was the accounting treatment, not the toxic assets and years of building leverage, that required drastic markdowns. Who was responsible for draining the liquidity from the market? Poseidon?
Robert Rubin Says 'Mark-to-Market' Accounting has Done 'Damage' [Bloomberg]