Today, Democrats on the House Financial Services Committee defeated an amendment that would force the Financial Accounting Standards Board (FASB) to appear in front of the Committee to discuss the nation’s accounting standards. Despite repeated calls by Congressman Blaine Luetkemeyer (MO-03) and a bipartisan group of Committee members for increased transparency and accountability at FASB, the Committee has taken no action in the 116^th Congress.

“Less than 2 weeks ago, multiple witnesses at a Subcommittee hearing with Minority Depository Institutions discussed the harmful effects FASB’s CECL accounting standard will have on low-to-moderate income consumers, particularly in minority communities” said Luetkemeyer. “Unfortunately, yet again Chairwoman Waters has blocked any attempt to address this potentially disastrous standard.”

Background: Earlier this month, Congressman Luetkemeyer led a bipartisan letter to Treasury Secretary Steven Mnuchin urging FSOC to require OFR to conduct a study on the CECL accounting standard. Last month, he also introduced the Responsible Accounting Standards Act, legislation that would increase accountability at FASB by requiring it to follow the Administrative Procedure Act. Luetkemeyer also joined a bipartisan group of colleagues earlier this year on legislation that would stop and study the potential impacts of CECL.