Mark to Market May Be A Good Or A Bad Thing....

From theStreet.com

In the coming week, many fund managers may see their day of reckoning: July's month-end portfolio evaluations by prime brokerage firms that lend to these funds will include some of these best attempts at valuations. Many investors have pointed to Aug. 15 as a day to watch, as margin calls and collateral requirements issued then could generate some forced selling of more liquid assets.

With the Securities and Exchange Commission now combing through Wall Street brokerage firms' books to ensure they are being consistent in their accounting methodology, the pressure will likely be on for these firms to be conservative in their valuations.

This could well mean more hedge fund blowups and cascading, fear-driven selloffs. It may also mean more declines for the financial sector, particularly brokerage houses like Bear Stearns (BSC - Cramer's Take - Stockpickr - Rating), Lehman Brothers (LEH - Cramer's Take - Stockpickr - Rating), JPMorgan (JPM - Cramer's Take - Stockpickr - Rating), Morgan Stanley (MS - Cramer's Take - Stockpickr - Rating) and Goldman Sachs (GS - Cramer's Take - Stockpickr - Rating), among others.