Under pressure from lawmakers to cooperate, federal banking and securities regulators reached a deal Wednesday that should head off future disputes over excessive loan loss reserves.

As part of the agreement, the Securities and Exchange Commission said it would not require a bank to restate earnings, even if it believes the institution has inflated reserves or failed to adequately document the size of the fund.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.