Luetkemeyer Introduces Bill to Permanently Eliminate CECL
Washington, August 4, 2020
Tags: Financial Services
WASHINGTON, D.C. – On Friday, Congressman Blaine Luetkemeyer (MO-03) introduced a bill that would permanently eliminate the harmful Current Expected Credit Loss (CECL) accounting standard.
“COVID-19 has created a real-life case study of CECL’s procyclicality and has shown it wreaks havoc on the balance sheets of financial institutions, specifically in an economic downturn. CECL forces banks to increase reserves at the most inopportune time, decreasing access to credit for consumers when they need it most. The unnecessary increase in reserves and required economic modeling for CECL have resulted in widespread confusion among investors and unnecessary costs to institutions,” said Congressman Luetkemeyer.
“This standard is bad for institutions, bad for investors, and bad for everyday Americans. It is time we eliminate this harmful accounting standard once and for all.”
Click HERE for bill text.