FASB chief: Fair-value rules didn't cause AIG's problems

06/29/2009 | InvestmentNews (free registration)

The former chairman of American International Group deceived Congress when he went to Capitol Hill and argued that AIG's problems were caused by fair-value accounting standards, Financial Accounting Standards Board Chairman Robert Herz told the National Press Club. At the same time, Herz said, standards set by regulatory bodies to determine capital requirements for banks should not be directly tied to the FASB's accounting standards. "I would be supportive of a greater decoupling between the determination of bank regulatory capital and our standards," he said.

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