October 28, 2021

FASB’s CECL Standard Is a Disaster Waiting to Happen

“A simple accounting standard is going to decimate the people in my district’s ability to have home mortgages. This has got to stop. This can’t continue. You should stop and look at the damage you’re going to be doing to the citizens of this country. And in essence after that happens, it’s going to devastate our economy. … And without a study, you can’t prove me wrong.”

Rep. Blaine Luetkemeyer (R-Missouri), member of the House Committee on Financial Services’ Subcommittee on Investor Protection, Entrepreneurship and Capital Markets, to FASB Chairman Russell Golden regarding the FASB’s decision not to conduct an economic impact study before implementing its current expected credit loss (CECL) standard.

Here’s a video of Luetkemeyer’s tongue-lashing of Golden during the oversight hearing on Jan. 15:

Bipartisan scolding of FASB chief raises lender hopes of softer CECL [American Banker]

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