{"id":1161,"date":"2008-04-02t00:29:16","date_gmt":"2008-04-02t05:29:16","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/2008\/04\/02\/will-the-credit-crisis-sink-fair-value\/"},"modified":"2015-10-23t02:48:32","modified_gmt":"2015-10-23t06:48:32","slug":"will-the-credit-crisis-sink-fair-value","status":"publish","type":"post","link":"\/\/www.g005e.com\/2008\/04\/02\/will-the-credit-crisis-sink-fair-value\/","title":{"rendered":"will the credit crisis sink fair-value?"},"content":{"rendered":"

<\/a><\/span><\/span>and how much could it hurt the iasb<\/strong>?<\/strong><\/p>\n

rob lewis (pictured) at financeweek.co.uk makes five great points:<\/p>\n

    \n
  1. the iasb<\/a> entered 2008 \u00c2\u00a33.5 million short of its annual budget… securing the remaining funding could prove difficult if cash-strapped financial institutions no longer see anything to gain from fair value now that the downturn has kicked in. or, indeed, from advancing a system of standards that some see as partly responsible for the market\u00e2\u20ac\u2122s instability in the first place.<\/li>\n
  2. last week, aig<\/a>\u00e2\u20ac\u2122s chief executive, martin sullivan, complained that the group had no intention of selling its assets at the current prices. he argued that the current rules created a vicious circle in which companies incurred paper losses, lost the confidence of investors, and then had to raise funds in unfavorable market. lehman brothers<\/a> and goldman sachs<\/a> also wrote-down of $1.8 and $2 billion respectively.<\/li>\n
  3. barney frank<\/a>, chairman of the financial services committee in the house of representatives, has also asked for the fair value rules to be reconsidered.<\/li>\n
  4. now that national economies may be at stake, reforming fair value has ascended the agenda.<\/li>\n
  5. to what extent it will survive in its original incarnation remains to be seen.<\/li>\n<\/ol>\n

    full article, here<\/a>.<\/em><\/p>\n