Commentary In 1997, the Government Accounting Standards Board (GASB) released GASB 31, requiring municipalities to mark their portfolios to market for financial reporting purposes. Had GASB been proactive and not reactive, perhaps Orange County’s 1994 bankruptcy would never have occurred. Because the county’s financial statements did not reflect market losses, my previously-expressed concerns about a potential implosion were ignored by the mainstream media. After the county announced it was filing for Chapter 9 bankruptcy, this accounting requirement deficiency became national news and was eventually rectified. As a result, this country has not seen a similar municipal bond portfolio meltdown since. So, I take a little credit for the issuance of GASB 31. GASB was also reactive with mandating pension and other post-employment benefit (OPEB) liabilities on municipal balance sheets, not requiring it until the past decade. Publicly-traded companies, subject to promulgations from the Financial Accounting Standards Board (FASB), had been …