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Question
During the financial crisis of 2008-2009, the FASB provided guidance on asset valuation that allowed
A. DI management to use internal cash flow models and assumptions to estimate fair value when there is limited market data available.
B. regulatory capital of banks to deviate from industry norms.
C. excess reserves with the Fed to be included as regulatory capital.
D. DIs to choose either book value treatment or market value treatment of asset valuation.
E. DI management the option to postpone asset write-downs until adequate capital was available.
Answer
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