Sheila Bair parrots the banks

Sheila Bair's viewpoint, is now juxtaposed against Elizabeth Warren's. Speaking before a bunch of CPA's, she said this and got a standing ovation. (from Zero Hedge)

Fair Value Accounting

Another ongoing regulatory process is FASB's proposal to substantially revise the accounting standards for financial instruments. Under the proposed rule, banks would be required to measure substantially all of their financial instruments at fair value on the balance sheet.

While we understand that the objective of the rule is to make financial statements more transparent, we believe that its effect could be to undermine financial stability by making bank performance more procyclical. In short, we do not believe that a bank – whose business strategy is to hold loans and deposit liabilities for the long term – should be required to measure them at fair value on the balance sheet.

We got a catfight that no-one will want to watch!