Regulators take aim at unrealised derivatives profits

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It became a common complaint during the crisis: banks used the vast paper profits created by an asset bubble to pay dividends, bonuses and fund share buy-backs, leaving them weak when the bubble burst. Now, faced with accounting changes that would result in more financial instruments being reported at fair value through the income statement – meaning changes in value would appear as profits or losses – regulators have been quietly discussing radical new rules that would separate p

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