Treasury, SEC unlikely to dismiss mark to market principle
The United States Treasury and the Securities and Exchange Commission are not discussing the future of fair value, the valuation technique at the centre of billions of dollars of bank asset write-downs, Reuters has reported.
The news counters speculation, and demands, that the US government would suspend the accounting rule. US stocks gained ground following comments by Democrat senator Christopher Dodd that the rule could be amended.
Senator Dodd said it might be possible to soften fair value rules – which call for assets to be valued at daily market prices – for banks with toxic assets for which markets have failed, without abandoning the underlying accounting standard.
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