Sir David Tweedie, head of the International Accounting Standards Board, says the easing of fair-value accounting standards is lowering the quality of accounting of banks in Europe and is more likely to damage public confidence in financial institutions than enhance it. He criticized rule adjustments that now allow banks to base values upon their own judgment. The IASB head said the judgment that banks are now allowed to use to explain away mark-to-market data is the same judgment they used to get into those bad investments in the first place.

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