These days, when some in the political circle are calling for an expansion of Dodd-Frank, the chairman of the FDIC, Martin Gruenberg decided in April to ease regulations in an effort to try to jump start the creation of new banks. As you know, the number of de novos sagged after the Great Recession. In short, Gruenberg slashed the period of microscopic regulatory scrutiny … [Read more...]
Could FASB’s Proposal Put A Few Nails In Bankers’ Coffins?
I’ve written several articles about the future of banking, but it appears the Financial Accounting Standards Board could be putting nails in a few coffins. FASB’s complex proposal (Current Expected Credit Loss, or CECL) would force community banks to record a provision for credit losses the moment they make a loan. Let’s look back a few years at around 2007 and 2008, around … [Read more...]