Fair Value – Fairly Fair
Robert Merton, 1997 Nobel laureate in economics; Robert Kaplan, professor at Harvard Business School; and Scott Richard, professor at the Wharton School of the University of Pennsylvania, have come out in support of fair-value in the FT. Their argument: `Legislators and regulators fear that marking banks’ assets down to fair-value estimates will trigger automatic actions as capital ratios deteriorate. But using accounting rules to mislead regulators with inaccurate information is a poor policy.’
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Financial Crisis – MTM: Its Not Your Fault …
Robert Merton, 1997 Nobel laureate in economics; Robert Kaplan, professor at Harvard Business School; and Scott Richard, professor at the Wharton School of the University of Pennsylvania, have come out in support of fair-value in the FT. Their argument:
`Legislators and regulators fear that marking banks’ assets down to fair-value estimates will trigger automatic actions as capital ratios deteriorate. But using accounting rules to mislead regulators with inaccurate information is a poor policy.’
For more:
