The worldâs top banks have stepped up pressure to relax controversial accounting rules with a new plan aimed at breaking the âdownward spiralâ of huge writedowns, emergency fundraisings and fire-sales of assets. The proposals on âfair valueâ accounting by the Institute of International Finance, an alliance of 300-plus companies chaired by Josef Ackermann, Deutsche Bankâs chairman, would enable financial companies to value illiquid assets using historical, rather than market, prices. Under the plan, obtained by the FT, banks that decide to keep assets on their balance sheet would be allowed to sell them after two years instead of having to hold them to maturity. http://ftalphaville.ft.com/blog/2008/05/22/13251/top-banks-urge-relaxed-writedown-rules/ If you are in trouble - use "creative accounting" methods...business as usual...
We have had 300+BP of rate cuts that have driven food and fuel prices up, isn't that enough for them? If they need more then its about time they were made to declare their insolvency so that all the distortions for their benefit can be stopped. Will the world be a better or worse place without Lehman Bros et al?