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Banks get relief on DVA headache

The banking industry’s least-favourite accounting rule – described by JP Morgan's Jamie Dimon as a 'ridiculous concept' – is being scrapped

JP Morgan CEO Jamie Dimon has described DVAs as “one of the more ridiculous concepts that’s ever been invented in accounting”
JP Morgan CEO Jamie Dimon has described DVAs as “one of the more ridiculous concepts that’s ever been invented in accounting” Photo: iStock

The banking industry’s least-favorite accounting rule is being scrapped.

Accounting rulemakers on January 5 changed a provision that in recent years has resulted in huge - and often head-scratching - swings in bank earnings. James Dimon, JP Morgan's chief executive, has called the rule "one of the more ridiculous concepts that's ever been invented in accounting".

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