The Financial Accounting Standards Board has relaxed fair value accounting rules, Bloomberg reported Thursday. The changes enable companies to use their judgment regarding the prices of some of their investments. Citigroup's chairman, Richard Parsons, said simply, "Good decision."
Experts say the relaxed rules, which can be applied to first-quarter results, "may reduce banks' writedowns and boost net income."
Ranking Republican House Financial Services Committee member Spencer Bachus of Alabama called the move overdue, while American Bankers Association CEO Edward Yingling said it should give investors "more accurate estimates."