Financial crises often result in government intervention to reallocate “bad paper” to new owners (purchasers), introducing valuation challenges for accountants, auditors, and those relying on their judgments. This paper argues that financial reporting of this reallocation and its subsequent...

Banks reliance on short-term funding has increased over time. While an effective source of financing in good times, the 2007 financial crisis has exposed the vulnerability of banks and ultimately firms to such a liability structure. The authors show that banks that relied most on wholesale...