The SEC clarification to fair value accounting will place
more trust in bank accountants, hopefully building
relationships between counterparties again as pressure is put
on in-house valuations.
While the clarification, which reverts the rules back to US
Financial Accounting Standards Board Statement 157, does not
eliminate all fair value requirements it does allow accountants
to estimate loan values and eliminate the mark-to-market
standards the SEC introduced in November of last year.