There are prob­ably some dan­gerous things left off the bal­ance sheet still, and we’ll only find out what in the next crisis,” said David Sherman, an accounting pro­fessor at North­eastern Uni­ver­sity in Boston. “But how many times do we have to go through this to figure it all out?”

After failing to agree on common stan­dards for deriv­a­tives net­ting and con­sol­i­da­tion of secu­ri­ti­za­tions, rule-​​setters are now heading in dif­ferent direc­tions as they debate how to account for loan-​​loss reserves.

Read the article at Bloomberg →