FASB

Readers react to Congress vetting Facebook's Libra, heavily debate whether to delay CECL, opine on attempts to roll back overdraft laws and more.

With some adjustments, the loan-loss accounting standard can be more secure and workable for banks.

As many as 20% of institutions haven't started planning for the new standard, according to one study. Many say CUs must start now in order to be ready, even if the rule is postponed.

Russ Golden, the chairman of the Financial Accounting Standards Board, says implementation of its credit loss rule should go forward, but will issue new supporting documents.

The accounting rules group is weighing whether to consolidate and push back deadlines for smaller firms to comply with credit-loss accounting change in light of concerns they will not be ready.

The bipartisan House effort to delay the Current Expected Credit Loss standard comes less than a month after Republican senators introduced a similar bill.

Readers weigh in on the role of the Financial Accounting Standards Board, consider personnel changes at the Consumer Financial Protection Bureau, debate the viability of public banks and more.

The effort to delay CECL comes a week after a House panel mounted a bipartisan attack on the new FASB standard.

Both Democrats and Republicans devoted considerable time at a House Financial Services Committee hearing last week to lamenting how the accounting standard will hurt small lenders.

The American Institute of Certified Public Accountants says banks are fighting accounting fatigue — thank CECL for that — and wants the FASB to push back a deadline for privately held firms to put operating leases on their balance sheets.

Banking officials can reasonably disagree on new standards for current expected credit losses, but the accounting body developed the rules over many years and based them on extensive feedback.

The standards board has been granted vast authority without having to answer to policymakers, and its latest accounting method, CECL, will be a disaster for small banks.

Publicly traded banks will have to book expected losses on loans starting next year; the jump in mortgage refinancings could be a mixed bag for banks.

FASB this week is also expected to discuss credit loss standards while a House subcommittee will discuss student borrowers and loan servicing, and more.

Rep. Blaine Luetkemeyer, R-Mo., told the mortgage giants' chief federal regulator that the Financial Accounting Standards Board’s new model for estimating loan losses could pose risk across the mortgage market.

Despite recent chatter about a delay, there’s reason to believe the Current Expected Credit Losses accounting standard will go into effect next year. Regulators should do more to help smaller institutions prepare.

Bankers weigh their options in mortgage and CRE lending as implementation of a new accounting standard nears.

Bigger banks complained that a two-tier system would force them to rethink their models, while smaller banks raised concerns about adding more complexity to an already burdensome process.

With the government functioning again, Congress may finally turn its attention to credit union priorities.

At a FASB meeting Monday on proposed changes to the accounting standard, its critics will be given a platform.