5/22/2008

Led by Deutsche Bank Chairman Josef Ackermann, the Institute of International Finance, which is an alliance of more than 300 financial firms, has issued proposals on "fair value" accounting. The proposals would allow financial institutions to value illiquid assets using historical prices rather than current market prices. The effort aims to halt the "downward spiral" of massive write-downs, followed by emergency capital-raising efforts and asset fire sales.

Related Summaries