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15 October 2009

CMSA of the US: financial firms warn accounting changes could threaten recovery


The Commercial Mortgage Securities Association said that the accounting rule bans the use of controversial financial entities that allowed firms to shift risks away from their bottom lines.

Financial and real estate interests are making a strong push for federal regulators to delay the implementation of a new accounting rule set to take effect at the beginning of next year. The rule bans the use of controversial financial entities that allowed firms to shift risks away from their bottom lines. John Courson, president and chief executive officer of the Mortgage Bankers Association (MBA), said the accounting rule “may hinder the current economic recovery under way.” MBA and the Commercial Mortgage Securities Association (CMSA) filed a comment letter to federal regulators last week. Lobbying associations have also made a strong plea that the regulations should be delayed because the association that sets international accounting standards has yet to come out with a similar rule. “This should serve as further reason to delay the regulatory capital impact,” said Dottie Cunningham, Chief Executive Officer of the CMSA. The Financial Services Roundtable, which includes the 100 largest financial firms, supports delaying the rule, said Melissa Netram, the association’s Director of Regulatory Affairs. The American Securitization Forum, another lobbying association, is seeking a six-month delay in any change to capital requirements, or at least a phase-in period.

Press release

 



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