Market values produce a more accurate picture of the bank’s current financial position for both stockholders and regulators.  Stockholders can more easily see the effects of changes in interest rates on the bank’s equity, and they can evaluate more clearly the liquidation value of a distressed bank.  Among the arguments against market value accounting are that market values sometimes are difficult to estimate, particularly for small banks with non-traded assets.  This argument is countered by the increasing use of asset securitization as a means to determine value of even little-traded assets.  In addition, some argue that market value accounting can produce higher volatility in the earnings of banks.  A significant issue in this regard is that regulators may close a bank too quickly under the prompt corrective action requirements of FDICIA.