In what may later be termed the banking world's version of "Believe It or Not " it appears that the federal regulators, specifically the Comptroller of the Currency, are now concerned about banks' over-reserving for loan losses.

Mind you, these are the same regulators that a few years ago mandated the massive reserve policies of the past. These guardians have put the industry and its auditors on notice to expect scrutiny of "excessive" reserves. Violators could be assessed a penalty if a bank continues to reserve without "good reason."

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