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Accounting body says some financial firms did not take sufficient writedowns on Greek debt
BRUSSELS (AP) ' An international body that sets accounting standards says that some European banks and financial firms did not take sufficient writedowns on the Greek bonds they hold.
The International Accounting Standards Board says some firms only wrote down the value of their Greek bonds according to a restructuring suggested by the Greek government, which would see their value drop by about 21 percent.
However, the IASB says if firms tried to sell those bonds on the open market now, they would get much less than that.
IASB Chairman Hans Hoogervorst made the criticism in a letter sent to the European Securities and Markets Authority dated Aug. 4 but published Tuesday.
Hoogervorst said the public criticism was an exceptional move, triggered by "visibly inconsistent application" of accounting rules.