1. After the GFC, consideration was given to the role of FVA in the GFC (for example, the FCAG (2009) and Pozen (2009)). Identify the conclusions reached regarding the role of FVA in the GFC
2. It has been claimed that Fair Value Accounting (FVA) exacerbated the Global Financial Crisis (GFC). These claims were often made by banks, and related to the role of FVA (mark- to-market accounting) in the phenomena of procyclicality and contagion. Explain what is meant by procyclicality and contagion, with reference to the role of FVA