An evaluation of the circumstances is necessary to determine whether the transaction is orderly based on the weight of the evidence is required to estimate fair value in accordance with SFASNo.157
There were differing opinions on the expected impact of FSP FAS 157-4.CNBC financial markets commentator Lawrence Kudlow suggested that it would result in banks repotting improved profitability and that their balance sheet would reveal much more capital than was previously reported under the provisions of SFAS No.157 On the other hand, opponents of the amendment, such as hedge fund manager James Chanos, argued that it “ allows banks to substitute their own wishful- thinking judgments of value for market prices.