"The SEC has statutory authority to establish financial accounting and reporting standards for publicly held companies under the Securities Exchange Act of 1934. Throughout its history, however, the Commission’s policy has been to rely on the private sector for this function to the extent that the private sector demonstrates ability to fulfill the responsibility in the public interest."
Granted some political pressure was put on FASB by congress a year or so ago, in order to change the way asserts on the banks books were to be valued (IIRC this helped the banks by making them look solvent when they clearly were not.)
Link below:
Boats and Fish!
