Recall that the $700 billion bailout deal passed by Congress included a requirement that the SEC study the impact of fair-value accounting on the financial system. Some thought this might presage an eventual suspension of FAS 157, which many industry executives blame for worsening the credit crunch. Recall also that the bailout law also made clear the SEC had the ability to suspend the rule.

Well, the report will be delivered on Jan. 2, but it's clear that there will be no suspension of the rule, which will disappoint some banks, according to CFO.com. Embattled SEC chairman Chris Cox has gone public with his view that while more guidance and better auditing practices are needed, fair-value accounting is absolutely necessary. He suggests that in the Sarbanes-Oxley era, such rules are critical to ensuring confidence in the system.

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