MEDIA ADVISORY 09/18/08
FASB Chairman Robert Herz Delivers Insights About Current Financial Crisis in Speech to Diverse Group of Executives
Norwalk, CT, September 18, 2008—Robert H. Herz, chairman of the Financial Accounting Standards Board (FASB) delivered personal observations and insights about the current credit crisis in a speech today to executives attending a forum on structured finance in New York.
In his speech, entitled “Lessons Learned, Relearned, and Relearned Again from the Credit Crisis—Accounting and Beyond,” Herz said, “Each time there are a number of lessons to be learned from market events. But unfortunately, some of the lessons seem to be forgotten and have to be ‘re-learned’ again and again multiple times.”
“As seems to be the case in other past crises, I believe the problems that have emanated from our ongoing financial crisis again demonstrate that perverse incentives lead to perverse outcomes,” Herz said.
The complete text of Herz’ speech is avaiable by clicking on the link below. All views expressed are the personal views of Robert Herz and are not intended to represent any views of the FASB. FASB positions are established only after extensive due process and deliberations.
About the Financial Accounting Standards Board
Since 1973, the Financial Accounting Standards Board has been the designated organization in the private sector for establishing standards of financial accounting and reporting. Those standards govern the preparation of financial reports and are officially recognized as authoritative by the Securities and Exchange Commission and the American Institute of Certified Public Accountants. Such standards are essential to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information. For more information about the FASB, visit our website at www.fasb.org.