How to avoid a financial crisis

The Institute of International Finance* have come up with a cracking suggestion; just allow banks to fudge their figures!

Of course, they don't put it quite so crudely, the relevant bit in the article says "... there was an 'urgent need' for policymakers to consider changes to mark-to-market accounting rules to avoid 'unintended procyclical consequences which could prolong credit market problems'."

Er ... wasn't it people lying about incomes and property values that got us into this mess? And the way out is to allow banks to lie in their accounts?

* The banks' lobbying association.