"How do you value financial instruments that are not traded? If no active market exists, fair values to be carried on balance sheets can only be determined with the help of alternative valuation methods. It is unacceptable that the valuation method is selected by banks alone or essentially depends on the auditor's generosity. After all, the fundamental question is which valuation technique really leads to a reliable, consistent and substantial statement on the value of a financial instrument under the current circumstances."

Jochen Sanio 

President of the Federal Authority for Financial Services Supervision