McCreevy supports switch to fair value accounting

In the wake of the global financial crisis, Charlie McCreevy, EU Internal Market Commissioner, has proposed a switch to rules on fair-value accounting if other parts of the world do so as part of a European regulatory overhaul.

The new plan, which also proposes strict limits on any individual risk taken by European financial institutions and higher capitalisation, updates the Basel II global standards in the EU, will go to the European Parliament and the council of EU governments, the Irish Independent reports.

McCreedy’s proposal also includes higher capital standards for the securities referred to as structured finance and the measures will also seek tighter co-operation among regulators and proposes each multinational bank be overseen by a college of authorities from every country in which it does business.

‘We in the European Commission can assist in providing some of the solutions,’ McCreevy said. ‘There is no one single answer to the financial turmoil.’

Further reading:

Sarkozy joins fair value scrap

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