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PRESS RELEASE

FOR IMMEDIATE RELEASE
Media Contact: Elise Brooks, 202.589.2427

Important Clarification Needed To Improve Impairment Accounting

Washington, D.C.—November 21, 2008—The Financial Services Roundtable emphasized today its support of a clarification to impairment accounting (FAS 115) in wake of the Securities and Exchange Commission Fair Value Roundtable held this morning in Washington, D.C.

The Financial Services Roundtable believes that this clarification to impairment accounting would benefit the U.S. economy – and U.S. consumers and investors – in a number of important ways:

Will ensure that the impairment accounting for these securities better reflects the long-term value of the securities.
Will increase transparency by improving investors’ ability to see the credit value of securities and thus estimate future earnings.
Will promote lending by helping to restart the securitization market.
Will help harmonize U.S. GAAP with international standards.
Will eliminate the asymmetry between loan and securities accounting.
Will reduce the forced liquidation of securities and the pro-cyclicality of the current treatment.
Will improve confidence in the financial stability of the system.

Such clarification is in concert with The Financial Services Roundtable’s comments to the Securities and Exchange Commission on the use and importance of better guidance to or changes to fair value accounting in an inactive market. These comments can be found on our website at: http://www.fsround.org/policy/regulatory/sec.htm.

The Financial Services Roundtable represents 100 of the largest integrated financial services companies providing banking, insurance, and investment products and services to the American consumer. Member companies participate through the Chief Executive Officer and other senior executives nominated by the CEO.

Roundtable member companies provide fuel for America's economic engine, accounting directly for $66.1 trillion in managed assets, $1.1 trillion in revenue, and 2.5 million jobs.

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