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CECL
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'What a bunch of Luddites!': Comments of the week

ByRachel Witkowski
July 4, 2019 9:30 PM

Readers react to Congress vetting Facebook's Libra, heavily debate whether to delay CECL, opine on attempts to roll back overdraft laws and more.

Facebook Libra
Like Network and Technology - Man Holding Smartphone Background
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On whether Congress will be able to stop Facebook from launching its cryptocurrency, Libra:

"What a bunch of Luddites! None of these Monday morning Quarterbacks even raised an eyebrow when PayPal was created. Blind pigs foraging for payoffs."

Related: Will Congress stop Facebook's Libra?
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Close up of businessman or accountant hand holding pen working on calculator to calculate business data, accountancy document and laptop computer at office, business concept
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On regulators considering a delay for smaller firms to be in compliance with the new credit loss accounting standard:

"CECL will be devastating to small to mid-size banks . . . At a minimum, Congress needs to promptly enact pending legislation to put CECL on hold until a proper financial and economic impact study can be conducted. Bill Isaac, former Chairman FDIC."

Related: FASB to consider delaying CECL deadlines for smaller firms
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Business team hands at working with financial plan, meeting, discussion, brainstrom with tablet on office desk, Meeting concept.
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Another reader responds to the Financial Accounting Standards Board considering a delay of its CECL rule for small firms:

"Putting FASB in control of bank loan loss accounting makes no sense. This used to be, and should again be, the purview of bank regulatory agencies who understand the business and are accountable for the industry’s supervision. Congress...time to step up."

Related: FASB to consider delaying CECL deadlines for smaller firms
Smokestacks for story on climate change and banks, pollution
Steam rises from cooling towers at a coal-fired power plant West Virginia, U.S. Photographer: Luke Sharrett/Bloomberg
Bloomberg Creative Photos/Bloomberg
On whether banks should get Community Reinvestment Act credit for investing in projects that protect against climate change:

"Maybe they should give CRA credits if banks pay to clean the human waste and discarded drug paraphernalia from the streets of San Francisco. Sure... that's a terrible idea. But not as terrible as CRA credits for climate change virtue signaling."

Related: CRA credit for fighting climate change: One Fed bank's suggestion
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On a letter from 25 state AGs telling the Consumer Financial Protection Bureau not to curtail overdraft regulations.

" As usual, it's is all about politics with the Dems. They don't have any idea why the users of the OD product actually use it, and how those users actually value and appreciate the product."

Related: State AGs oppose CFPB efforts to roll back overdraft rule
overdraft
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Another reader responds to state AG attempts to stop the CFPB from rolling back its overdraft regulation:

"How about the headline of 25 state AGs support the effort?"

Related: State AGs oppose CFPB efforts to roll back overdraft rule
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On Financial Accounting Standards Board Chairman Russ Golden defending the incoming current expected credit loss standard for publicly traded firms:

"I'm not buying the argument that CECL would have mitigated the financial crisis. Both CECL and loan loss reserves are estimates based on assumptions about future loan performance. Those assumptions would not have been any less optimistic under CECL."

Related: FASB chair defends CECL: ‘The benefits justify the cost'
Rachel Witkowski
Tech reporter, Financial Planning
CECL Overdrafts Accounting Accounting methods CFPB News & Analysis FASB Facebook Cryptocurrency
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