Cyprus known as Laiki Bank), into a "bad" bank which would be wound down over time and a "good" bank which would be absorbed by the Bank of Cyprus. In return for a €10 billion bailout from the European Commission, the European Central Bank and the International Monetary Fund, often referred to as the "troika", the Cypriot government was required to impose a significant haircut on uninsured deposits, a large proportion of which were held by wealthy Russians who used Cyprus as a tax haven. Insured deposits of €100,000 or less were not affected. According to the 2017 International Monetary Fund
Fair value accounting and the subprime mortgage crisis as trading assets and are marked to market. However, as the crisis evolved and liquidity deteriorated, fair value assets held by banks increasingly became Level 3 inputs because their market prices became unobservable. As mentioned in the 2010 article written by Laux and Leuz, linking banking capital regulation and fair value accounting is the most plausible way fair value accounting could have contributed to the crisis: Asset prices deviate from their fundamental values, which causes a bank to write down its assets and, in turn, depletes its capital. Consequently, the asset write-downs may force the bank to sell such assets