WHAT HAPPENED AT SILICON VALLEY BANK?

by | Mar 10, 2023 | Fair Market Value

WHAT HAPPENED AT SILICON VALLEY BANK? What caused a run on the bank’s deposits? The short answer is, a liquidity problem caused by mis-marking asset values used for loan collateral in a climate of rising interest rates. Here is a quick review… -Silicon...

ASSET WRITE-DOWN: WHEN IS IT NECESSARY?

by | Mar 7, 2023 | Fair Market Value

ASSET WRITE-DOWNS Plan fiduciaries are required to do an asset write-down of the fair value of an asset has significantly dropped. (See, Hughes v. Northwestern University) Otherwise, an asset’s value may be over-stated and you may not know what your 401(k) plan...

FAIR VALUE HIERARCHY

by | Feb 15, 2023 | Fair Market Value

FAIR VALUE HIERARCHY FAIR VALUE HIERARCHY To make valuation measurements market-based, and as close to fair market value as possible, a fair value hierarchy was designed by the Financial Accounting Standards Board (FASB), embodied in FAS 157. This valuation standard...