He’s back, my favorite accountant of Dublin. Good ol’ Charlie McGreevy, the Internal Market Commissioner of the EU calls upon the International Accounting Standards Board to consider a change of one of its rules to align with the reform of its US equivalent allowing European banks to have more flexibility in valuing toxic assets.
As said before: even this will boost bank earnings and improve the capital levels, it doesn’t take away the roots of the problem: funding this stuff and the liquidity of these markets.
As we stumble deeper and deeper in the economic abyss, banks want to get rid of this toxic waste because repayment at maturity becomes more and more a problem. But they can’t, coz’ there is no market left.
Now, abolishing M2M makes sense if you have a central bank doped with quantitative easing. Not the ECB…
Hey Charlie, dear, what about IAS 39 you once favored, where fair value was the sacred cow?
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As said before: even this will boost bank earnings and improve the capital levels, it doesn’t take away the roots of the problem: funding this stuff and the liquidity of these markets.
As we stumble deeper and deeper in the economic abyss, banks want to get rid of this toxic waste because repayment at maturity becomes more and more a problem. But they can’t, coz’ there is no market left.
Now, abolishing M2M makes sense if you have a central bank doped with quantitative easing. Not the ECB…
Hey Charlie, dear, what about IAS 39 you once favored, where fair value was the sacred cow?
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