Via Bloomberg:

Sept. 30 (Bloomberg) — The U.S. Securities and Exchange Commission and the Financial Accounting Standards Board may issue additional guidance on fair-value accounting rules, people familiar with the matter said.

The SEC may say companies can rely more on assumptions such as expected cash flows in assessing how much assets are worth, said the people, who declined to be identified because the plans haven’t been completed. The guidance pertains to a requirement that banks review their assets each quarter and write them down if values have declined.

The SEC and FASB will probably resist calls from some members of Congress to suspend the accounting rules, the people said. SEC spokesman John Nester declined to comment.

So they will likely allow the banks to guess what these things are worth. I’m guessing their guesses will be higher than the market.

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