Banks have been given a one-year reprieve by US accounting standard-setters from having to take up to $5,000bn of debt assets on to their balance sheets, easing fears they would be forced into a new and hasty round of capital raising. The Financial Accounting Standards Board voted to delay until Jan 2010 the introduction of rules that will force banks to consolidate more off-balance-sheet vehicles directly in their accounts. Robert Herz, FASB chairman, said the move was made reluctantly after a staff recommendation for a delay because there might not be enough time for all companies to adjust to the upheaval. The rules will apply to all banks that report accounts under US GAAP rules.
