Accounting Quote by Stephen A. Schwarzman
“The concept of fair value accounting is correct and useful, but the application during periods of crisis is problematic. It's another one of those unintended consequences of making a rule that's supposed to be good that turns out the other way.”
About This Quote
Source Speech: Interview on Financial Regulation, 2020
Fair value accounting provides transparent asset pricing, yet during crises it can amplify volatility and mislead stakeholders.
In simple terms: Fair value works normally but can hurt in crises.
Key Takeaway
Use caution and adjust rules in turbulent times.
Themes
accounting
risk management
financial stability
Mood
cautious
analytical
Type
advisory
critical
When to use this quote
- banking crises
- investment analysis
- corporate reporting
- policy making
Key Concepts
fair value
unintended consequences
regulatory design
Questions to Reflect On
- How can standards balance transparency with stability?
- When should exceptions be applied?
A Different Perspective
May overlook long‑term fundamentals in favor of short‑term market swings.
