US bankers ask SEC to override FASB fair value guidance
14 Oct 2008
The American Bankers Association (ABA) yesterday sent a Letter to US SEC Chairman Cox requesting that the SEC immediately take the following steps:
- Override FSP FAS 157-3 and replace it with guidance that clarifies that fair value in illiquid markets does not include forced or distressed sales. [Click here for Information about FSP 157 -3]
- Provide guidance on 'other than temporary impairment' as requested in ABA's letters to the SEC and the FASB
- Suspend the proposal on accounting for securitizations
- Suspend work by accounting standard setters on any projects that would require fair value in any future accounting standards pending Congressional review of the study mandated by the Emergency Economic Stabilization Act
The ABA's letter also notes that "yesterday 15 European countries moved to make the types of accounting changes ABA has been advocating, but that FASB on Friday, as a practical matter, failed to implement".
Click to view the Letter to US SEC Chairman Cox (PDF 263k).
