mandatory for all banks was highly controversial. The regulators' view that such an inclusion would result in greater bank … unrealistic volatility in regulatory capital and would force banks to make costly changes to their investment and risk management … behavior. Using a comprehensive sample of U.S. banks we provide three pieces of evidence: First, we find that inclusion of …

For many years the regulatory capital of commercial banks in the United States has been based on the book value of … assets and liabilities. That has changed with the implementation of Fair Value Measurements in FAS 157. Now banks and … regulators must view capital from a Fair Value perspective. This could have a profound adverse affect on commercial banks when …

For many years the regulatory capital of commercial banks in the United States has been based on the book value of … assets and liabilities. That has changed with the implementation of Fair Value Measurements in FAS 157. Now banks and … regulators must view capital from a Fair Value perspective. This could have a profound adverse affect on commercial banks when …