How Fair is Fair-Value Accounting?
Forbes June 24, 2008
by Liz Moyer

"Highly leveraged companies [investment banks, hedge funds] might temper risks if they know the assets...have to be marked-to-market...Since investment banks, by their own admission, don't know the value of their own assets, having an exercise like fair-value accounting is a necessary evil. "The alternative is opaque lying," Tavakoli says.



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