FAS 157
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On March 3, 2010, Mr. Randall (Randy) Schostag, CFA and expert appraiser, spoke at length about the challenges of hard-to-value investing. Besides providing an overview of FAS 157, Mr. Schostag explained the different standards of value, information rights of institutional investors, price reconciliation, conflicts of interest and the role of the independent pricing agent.
FiduciaryX.com subscribers can hear the entire interview of Mr. Schostag's interview by clicking here. You need to be logged into your FiduciaryX.com account. |
In his March 8, 2010 post, FiduciaryX blogger, Dr. Norman Ehrentreich, explains that Congress may have its hands full in trying to provide funding relief for defined benefit plans. New regulation is needed as a follow-up to the Worker, Retiree and Employer Recovery Act that was passed into law in December 2008. Some bristle at new legislative efforts because it includes a provision that would require sponsors to keep their plans open to employees. Dr. Ehrentreich suggests that providing extended funding relief in a vacuum is ill-advised. It is critical to address the underlying reasons for the current crisis. He writes that "Establishing disincentives for plan sponsors to adequately fund their plans while punishing them for being underfunded is not the only example of sending mixed signals to plan sponsors."
"The Challenge of the Fiduciary - Part One" by FiduciaryX.com contributor Lori Widmer (March 5, 2010) describes why insurance underwriters are worried about their risk exposures. Post-Enron, large settlements are fast becoming a norm and sometimes not covered by the insurance policies in place. The inevitable is an increase in premiums and/or rescinded coverage at exactly the same time that institutional investors face new risks.