I am intrigued at the ordering of an emergency audit of all French banks. What fascinates me most though is what will happen to fair value in this process.
It is well known that some considerable opposition to fair value and may even want the principle removed for the valuation of most financial instruments?
So, the emergency auditors, do they play hardball and say, we use fair value? Or do they look to give their home grown banks an easy ride? what would the French government prefer?
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