Roundtable urges suspension of accounting rule for "bad bank"

02/2/2009 | Reuters

Scott Talbott, senior vice president of government affairs for the Financial Services Roundtable, says he believes suspending fair-value accounting is one way to overcome the pricing concerns surrounding the creation of a government-controlled "bad bank" to acquire troubled assets. The biggest stumbling block for creating such a bank is how those assets will be valued when the government acquires them. "Otherwise it could trigger losses that all banks have to pick up, which is exactly opposite of what the government is trying to do," Mr. Talbott said.

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