Fair cop

摘要

In Firing their bazookas at the crisis, policymakers have blown holes in rules on everything from share trading to competition policy. It is therefore a miracle that fair-value accounting standards have not been hit too, in particular the requirement that banks "mark-to-market" most of their financial assets other than loans. These rules are deeply unpopular with many firms that have suffered losses and impaired capital positions. They would prefer to recognise losses in the traditional way-that is, slowly and when it suits them. More controversially, some argue the rules have created a vicious cycle of forced sales and falling prices.