SVB-Style Bank Accounting Needs to Go, Investor Group Says

Another prominent investor advocacy group wants US accounting standard-setters to upend an accounting practice that it says let Silicon Valley Bank hide losses on its long-term investments before it imploded.

The Council of Institutional Investors, which represents public pension funds, told the Financial Accounting Standards Board to eliminate the hold-to-maturity method the failed bank used to measure its assets and to require banks to report new information about their liquidity and interest rate risks.

Financial accounting and reporting was “clearly not the cause of SVB’s collapse, but its failure raises legitimate questions about the appropriateness of certain provisions of FASB ...