Rule Change Would Shift Loan-Loss Accounting [WSJ]
U.S. and international accounting rule makers have agreed in principle on a new standard for recording loan losses that may require banks to book some losses more quickly. Under the new plan, banks and other financial companies would shift to an "expected-loss" model, under which they would book losses and set aside loan-loss reserves based on future projections of losses. That would differ from the current system, known as an "incurred-loss" model, which requires evidence that a loss actually has occurred before the loss can be recorded. A move to using future loss projections would have the effect of accelerating the booking of losses.
House Balks at Payroll Tax Deal [WSJ]
House Speaker John Boehner flatly ruled out approval of a Senate agreement to temporarily extend the payroll tax cut through February, leaving uncertain both the tax cut and other year-end business as Congress struggled to finish its work for 2011. Mr. Boehner said Sunday on NBC's "Meet the Press" that a two-month extension was a sign of congressional dysfunction. "How can you do tax policy for two months?" Mr. Boehner said. "We really do believe it's time for the Senate to work with the House to complete our business for the year. We've got two weeks to get this done."
Hershey really missed an opportunity here.