Case | HBS Case Collection | October 2008 (Revised August 2009)

Subprime Crisis and Fair-Value Accounting

by Paul M. Healy, Krishna G. Palepu and George Serafeim


This case examines the challenges in implementing fair value accounting for mortgage instruments, the role of accounting in the sub-prime crisis, and proposals for revising accounting standards given the crisis.

Keywords: Fair Value Accounting; Financial Crisis; Debt Securities; Mortgages; Standards;


Healy, Paul M., Krishna G. Palepu, and George Serafeim. "Subprime Crisis and Fair-Value Accounting." Harvard Business School Case 109-031, October 2008. (Revised August 2009.)