The Role of Fair Value in the Subprime Mortgage Metltdown

The requirements for pricing securities from active external market transactions for prompt reporting to management and investors reflect the internet speed and transparency required for continuing national prosperity in the round the clock world of finance. Absent Fair Value Accounting standards, the delayed or deferred recognition of market losses allows investors to continue believe valuations...

The article goes into sub-prime mortgage valuations. i wanted to add a couple of comments about the negaitive effects of homes/properties being repossessed. This causes losses for the lender as they do not recover the principal and interest outstanding. It causes devastation and financial and social/psychological loss for the families evicted. I feel governements could assist i delaying repossessions...

The referred  article  gives  three different expert perspectives on fair value. In this analysis I  look  at  what  drives  fair  value  and  why fair value accounting applied on a consistent basis can help avoid poor financial reporting.