Can you imagine an accounting rule that would force banks to put up to $5,000 billion (according to Citigroup analysts) in debt on their balance sheets right now? That was exactly the scenario U.S. banks were facing. The rise of special purpose entities and such---which has really rankled regulators--has lead to a lot of regulatory breast-beating. Frankly, it would probably be a good idea to find ways to curb off-balance sheet creativity. But banks are reeling right now, big and small. Obviously, many are capital short, and a quick move to consolidate a lot of debt could really hurt their capital ratios. The FASB reluctantly has moved to delay new requirements until 2010, reports the Financial Times. Robert Herz, FASB chairman, told reporters, "It does pain me to allow something that has been abused by certain folks, to let that go on for another year."

For more:
- here's the FT article