Financial Times FT.com

SEC fails to douse debate over ‘fair value’

By Jennifer Hughes in London, Francesco Guerrera in New York and Joanna Chung in Washington

Published: March 31 2008 17:59 | Last updated: April 2 2008 00:16

Bankers and insurers do not usually look forward to getting letters from the Securities and Exchange Commission, but one last Friday held the prospect of brightening their weekend.

This was the SEC wading into the heated debate over “fair value” accounting – the form of marking assets to market prices that has led to billions in writedowns in the value of financial instruments since the credit crunch began.

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