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

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

Further reading:

Sarkozy joins fair value scrap

the Irish Independent story

Related reading

Fiona Westwood of Smith and Williamson.