FSA cautions banks on fair value
The warning follows round table meetings with banks and firms to discuss audits as part of its monitoring of the valuation techniques being used
The Financial Services Authority has warned that banks’ ‘fair value’ of
assets could differ from figures arrived for accounting and regulatory purposes.
The conclusions are a result of round table meetings with banks and firms to
discuss audits as part of its monitoring of the valuation techniques being used.
The rules remain un-changed, however the FSA has warned banks to be extra
careful in their valuations, the FT reported.
Further reading:
Deloitte warned of Bear Stearns problems
Pru rallies to defend fair value
PCAOB says don’t revise fair value