Here's why fair-value accounting is not good for community banks.

The vast majority of community banks are well managed. Community bankers have minimized credit, liquidity, and interest rate risk; produced a stable, consistent return for shareholders; promoted community welfare; and consumed the least amount of regulatory time and attention.Investors in community banks are looking for low risk, stability, and quality returns over the long term. The motivation for registering community bank capital notes and stock to be traded publicly is to attain liquidity for investors.

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