A Convenient Scapegoat: Fair Value Accounting by Commercial Banks during the Financial Crisis

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Subfields: Finance

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Financial Accounting in the Banking Industry: A Review of the Empirical Literature (2014, unknown): “Badertscher et al. (2012) focus solely on the regulatory capital effect of fair value accounting and examine whether other than temporary impairments (OTTI) or asset sales during the crisis years depleted regulatory capital thereby leading to a reduction in lending.”
A Real Effects Perspective to Accounting Measurement and Disclosure: Implications and Insights for Future Research (2016, background): “21 See Laux and Leuz (2010) and Badertscher et al (2012) who argue that there was very little evidence of fire sales during the crisis.”
Fair Value Measurements and Audit Fees: Evidence from the Banking Industry (2014, background): “These primarily consist of investments in debt securities classified as availablefor-sale or held-to-maturity (Badertscher et al., 2011, 60). The proportion of fair-valued liabilities carried by banks frequently is zero, so we do not include those proportions in our models. 4 We review these stateme”
Accounting for financial stability: Bank disclosure and loss recognition in the financial crisis (2021, unknown): “, Vyas, 2011; Badertscher et al., 2014) examine other-than-temporary impairments by banks during the crisis, but also include assets recorded at FV. The literature that examines the timeliness of loan loss provisions goes back at least to Beaver et al. (1989). 6 We recognize that ex post realized lo”