Banks in the US began questioning and criticising the rules shortly after the credit crunch began
The call by banking groups in the US this week to drop the use of fair value rules is not the first.
In fact banks in the US began questioning and criticising the rules shortly after the credit crunch began.
The rules, which apply market values to assets which may be difficult to value or appear de-valued as their trading floors thin, have been blamed for exacerbating the issues of hard-to-price assets.
US banking groups, led by the American Bankers Association are now lobbying to suspend the use of fair value accounting rules which they because it requires them to record losses they don't expect to incur.
See full Article.
Posts
