Fair Value Approach Relationship by Global Financial Crisis (Case Study in Bank of Leman Brothers)

K.Kadhm, Hatim

	Fair Value Approach Relationship by Global Financial Crisis (Case Study in Bank of Leman Brothers)
AL-Qadisiyah Journal For Administrative and Economic sciences
Article 1, Volume 13, Issue 4, 2012, Pages 113-128 PDF (0 K)
Author
Hatim K.Kadhm
Abstract
Many of the Accusations were addressed to some International Accounting Standards, including Standards for Fair Value, Disclosure and Caution being Responsible for A global Financial Crisis that was repeated in the Recent Past and have become A matter of concern and interest, There have been a number of reasons cause interesting Fact of this Crisis which is the increased Volume of Debt (Leverage) because there are Assets representing Ownership of Resources in kind from the Land and Buildings and others Assets representing indebtedness of any Lending and Borrowing, which is the Main Cause of theCrisis, as well as the lack of Oversight and Supervision of Financial Intermediaries such as investment Banks and Brokers Mortgages or Lack of Supervision of new Financial Products such as Derivatives or Control of Financial Institutions that issued Certificates of Credit worthiness, lack of Transparency and Delayed Disclosure of Accumulated Losses in the Financial Statements to Financial Institutions, and increase the interest Rate Progressive led to the increasing burden of Mortgage Loans in terms of duration and payment of Premiums, and that the American Banks didn’t observe the deal of Bazel(1) and Bazel(2). The Combination of these Factors helped to the Crisis But though the charges were to Approach the Fair Value of being a Major Cause of this Crisis is that the Goal of this Research is to Answer The following Question: - Is the use of Curriculum Fair Value Measurement of Financial Assets is one of the Main Reasons for A global Financial Crisis? The study has Reached a set of Conclusions, Mainly A difference by Economists and Financial Analysts on the Causes of the Crisis and Ways to treat and cause charge Approach Fair Value is the lack of access to Alike Market minute to many of The Assets and The possibility of Manipulation and charge accusation of this Approach as the main cause of the Crisis is just untrue. The Most Important Recommendations of the Research need to Restore Confidence to Financial Markets by educating the Investors of the importance of Adopting International Accounting Standards and contribute to give Transparency to make their Decisions right and work to Avoid Companies and Financial Markets in the Country as victim to Experiences and Ideas that went wrong by Corporations and Global Markets and take all the Ways and Mechanisms to Address them.

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