Please ensure Javascript is enabled for purposes of website accessibility

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]

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Related articles

a lightbulb on white background

The Smartest Service Businesses in the Country Are Accounting Firms, Says Some Lawyer

In a Bloomberg Law article that looks suspiciously like a thinly-veiled advertisement for Philadelphia law firm Cozen O’Connor, Cozen CEO Michael Heller outlines his firm’s business strategy — “We don’t want to be the firm that pays the highest salaries when times are great, terminates the associates when times are bad and then just keeps […]

"mind the gaap" subway markings

FASB Took It Easy in 2022

While the PCAOB has been on a mission to scare the pants off of auditors everywhere in the past year with record fines and scary speeches, the Financial Accounting Standards Board took a much more chill approach to 2022. A Thomson Reuters piece published last week informs us that FASB ended the year having issued […]