The top financial official at Bank of America on Thursday defended a method of accounting known as "fair value accounting," despite the fact that this system has come under fire lately in the wake of the recent credit crisis.
Speaking at a conference held by the Federal Reserve Bank of Chicago, Bank of America Chief Financial Officer Joe Price said he believed that the fair-value method of accounting makes risk "more transparent."
Price admitted that the fair-value method can be re-examined and improved, but said that it is important for risk control of "market-sensitive businesses."
The Bank of America CFO stated that the credit crunch has brought to light areas of risk that were underestimated, as he said, "either in size or severity."
However, Price concluded, "We would assert that changing the applicable accounting system will not address the more fundamental question related to risk assessment."
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.