It is probably a little late in the game. After taking huge writesoffs, the SEC may allow financial firms to provide a range of value for their damaged securities holdings. Perhaps then things won't look so bad. According to The Wall Street Journal, "Just as companies are closing their books on another tumultuous quarter, regulators are working on a plan that would let them tell investors that things may not be as lousy as they seem."

The idea is a poor one. The SEC is proposing that banks, insurance companies and brokerages set a range for the value of their troubled holding and then add commentary on why they think the range is right.

What company would not want to put an optimistic face on its numbers? That does not mean a misleading face, only one that puts the value of their assets at the high end of the allowed range.

It would also put 2008 reporting in discord with 2007 earnings when the "range of value" program was not in force. Investors are bound to be confused by a system which valued financial instruments one way in one year and another way in the next.

Although there would be some extra costs to companies, auditors from accounting firms should set values each quarter with management giving their opinions to experts and not to the public shareholders. Let the accounting firms provide the financial numbers. They don't have a bias.

Douglas A. McIntyre is an editor at 247wallst.com.