This publication endeavours to answer the question: whether the Capital Requirements Directive (CRD) is going to accentuate 'spiral death' in the financial market. The study will focus on how the implementation of the fair value rule and the prudential supervision introduced by the CRD will affect the performance of financial institutions under the current market developments. The paper will also consider some objections to IASB 39. The European financial sector saw in 2007 the introduction of new regulations under the Capital Requirements Directive, this new framework emerged in the wake of...