Risk Managers concerns [are] often pushed aside

Or circumvented. An example being a bank I know of where the structured credit desk wanted to aquire CDO’s the market risk people opposed it on the basis that the deals were too risky (despite AAA rating etc), so as a result they got pushed into a banking book to avoid being included in market risk and the market risk managers getting involved.

As for fair value accounting. I personally think there’s not enough of it. Any problems that it might be creating now are small compared to the problems of being able to choose how you value your books depending on what will give you the best number. Its a knee jerk reaction.