ABA Asks SEC To Provide Immediate Guidance On Fair Value, Hold New Standards
September 24, 2008
FEI Summary

In a letter dated Sept. 23, 2008 the American Bankers Association asked the U.S. Securities and Exchange Commission to provide immediate guidance on fair value measurement, and asked for a temporary stay on any new accounting standards – including proposed changes to the securitization and consolidation rules - pending further analysis, including any potential pro-cyclical effects that could undermine the economy. The letter, signed by ABA President and CEO Edward Yingling, acknowledges there are various causes of the current market turmoil, and focuses on proposed solutions to accounting issues which ABA believes exacerbate the crisis. Read the full letter here.

Prepared by Edith Orenstein, Director, Technical Policy Analysis, Financial Executives International (FEI). This summary does not reflect FEI opinion unless specifically stated above.