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.

This entry was posted by Gwen Robinson on Thursday, July 31st, 2008 at 5:44 and is filed under Capital markets. Edit this entry.