Hedge Funds

Industry says 'NO' to FASB derivative plan


The next big regulatory story - following the Securities and Exchange Commission's decision to impose mandatory registration - is likely to come from the FASB, which in early November will hold a hearing on the proposed standardization of the accounting formulas for calculating the fair value of derivatives in actively traded portfolios.

The FASB board put forward its initial proposals on "fair value measurement" in June, drawing some 90 - mainly hostile - letters from industry participants ranging from hedge funds, brokerage groups, investors and even mutual funds.

The written responses from groups like Morgan Stanley and the mutual fund