Market crashes are almost as old as the invention of money itself. But, as Gillian Tett points out in Fool's Gold, "the latest financial crisis is notable for its sheer scale." Economists estimate that total losses could amount to $2 trillion-$4 trillion, a figure surprisingly not dissimilar to Britain's gross domestic product. In its post-mortem analysis, the self-inflicted disaster has commonly brought to light the question: “Did the bankers, regulators and rating agencies fail to see the flaws, or didn't they care?” Importantly, it also created a hunt for scapegoats and quick fixes. Many Republicans and industry lobbyists insisted that the financial meltdown would not have been so severe if it were not for the deadly Fair-Value Accounting (FVA) standard. My position, however, is that accounting is not the root cause of the financial crisis. I argue that the mixed-attribute model has given rise to considerable accounting-motivated structures. And due to the selective application of FVA, this did not happen in practice; contribute to the procyclicality of the financial system. Nor would the collapse have otherwise been avoided with a different accounting scheme. I note that the crisis has had implications in setting standards, and the timely reformulation of current standards plays an important role in its resolution. To begin with, a recurring accusation among critics of FVA is that it has contributed to the procyclicality of the financial system. This criticism argued that, during the bankruptcy, FVA writedowns led to an excessive devaluation of the value of financial assets and an overestimation of losses. This led to the contagion effect and downward spiral of capital destruction, as outlined in Figure 1. And then it is singled out as the root cause of the financial crisis… middle of the paper… until the financial crisis?” Christian Laux and Christian Leuz, Journal of Economic Perspectives 2010• “The crisis of fair value accounting: making sense of the recent debate” Christian Laux and Christian Leuz, Accounting Organizations and Society 2009• “Is it right to blame fair value accounting for the financial crisis?” Robert C. Pozen, The Harvard Business Review 2009• “Blaming the Bean-Counters” The Washington Post 2009• “Fair Value Accounting: Understanding the Issues Raised by the Credit Squeeze” Stephen G. Ryan, 2008• “Accounting Did Not Cause the Crisis” The Global Association of Investment Professionals, CFA Institute 2009• “Accounting Practices: Did Fair Value Cause the Crisis?” Australian School of Business 2011• “Financial Crisis Advisory Group Report” 2009• “US Senate Committee Addresses Financial Crisis Prevention” The Accountant 2011