Large banks thrash regionals’ proposal on CECL
Plan would require more work and produce no capital benefit, executives tell FASB
The biggest US banks have criticised a proposal by US regionals to soften the impact of the new Current Expected Credit Losses (CECL) accounting standard, saying the proposal would create extra work for them and provide no tangible benefit.
“It seems to be trying to solve for a capital problem,” said Mario Mastrantoni, director of accounting policy at Wells Fargo. “That solution doesn’t work for all institutions, particularly the large banks.”
Executives from Bank of America, Citigroup, JP
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