FAS 157 requires fair value accounting for financial assets and liabilities. This increases transparency but also expenses as firms allocate more resources to personnel, consultants, and management time for cultural adaptation. Operations are also impacted through changes to structures, controls, information systems, and product offerings. Competitors like Goldman Sachs and Morgan Stanley face similar challenges. Merrill Lynch may focus on growing in markets like Russia, Eastern Europe, Brazil, and Chile or partnering with asset managers like Blackrock. Overall, FAS 157 increases consistency and accuracy in asset valuation but also impacts firm strategy, resources, and operations.
