Today Congressman Blaine Luetkemeyer (MO-03), Ranking Member of the Subcommittee on Consumer Protection and Financial Institutions, introduced the Responsible Accounting Standards Act. This legislation will direct the Financial Accounting Standards Board (FASB) to follow the Administrative Procedures Act and abide by the same rulemaking guidelines in place for every federal financial regulator.

In an op-ed published in The Hill today, Congressman Luetkemeyer said, “Under current law, FASB and its overseer, the Financial Accounting Foundation (FAF) are independent, private-sector organizations that fall outside the purview of the laws that govern regulatory rulemaking and require adequate assessments before implementing standards…. this legislation would require FAF to consider the impact their accounting principles will have on the U.S. economy, market stability, and availability of credit – something FASB has admitted to me they did not consider while promulgating CECL. This bill will not take away FASB’s independence, but it will force them to perform the due diligence they have proven unwilling to do.”

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