2008-05-26 — ft.com
Goldman Sachs said it was likely to sever its links with the Institute of International Finance after the association of leading banks and insurance companies called for a relaxation of controversial accounting rules on asset valuation.
Goldman, one of the IIF’s 370-plus members, said it did not agree with the IIF’s proposals, which have been circulated to regulators and politicians over the past month, and opposed any changes in “fair value†accounting.
“The proposals are extraordinary,†a Goldman official said on Thursday. “This is Alice-in-Wonderland accounting.â€
...
Under the IIF plan, revealed by the Financial Times this week, banks would be allowed to use historical, rather than market prices, to value illiquid assets – a change that could help to reduce the negative impact of the crisis on their strained balance sheets.
WOW. Apparently even Goldman considers this proposal too sleazy to be associated with. Kudos to them. Of course, they continue to be stuff to the gills with level-3 assets anyway.
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