In testimony before the Joint Economic Committee, Mr. Volcker, former Federal Reserve Board Chair and now top Obama Administration adviser, said that international standards will minimize regulatory arbitrage and combat a tendency by some jurisdictions to seek competitive advantage by tolerating laxity in oversight. Volker specifically listed accounting standards, capital and liquidity standards, and registration and reporting mandates as areas that demand international consistency. He singled out fair value accounting standards as having been inconsistently applied and contributing to downward spiraling valuations in illiquid markets.
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