Bonderman slams fair value
Private equity boss criticises the effects of the accounting standards which have been brought into sharp relief by the credit crunch
Bonderman, the private equity billionaire has panned fair value accounting
The buyout veteran called the accounting policies ‘absurd and destabilising,’
in an interview with the
Bonderman’s made the criticism because of the effects that the fair value had
on the worth of the debt of his companies in the current volatile financial
Under the accounting standards, Bonderman criticised the fact that debt
holders would appear to get less money back than they originally invested as
values are adjusted to reflect current market prices.
‘The accounting policies are absurd and destabilising,’ said Bonderman.
After criticisms from stakeholders, the SEC recently said that it is to hold
a round table on fair value accounting which will take place on 9 July.