Home -> Law Blog Directory -> Academic Blogs -> Conglomerate

OR PHONE (866) 635-1838 for Bankruptcy Help, (866) 635-6190 for Divorce,
(866) 635-2689 for Personal Injury or (866) 635-9402 for Criminal Defense

Find a Local Lawyer

Bankruptcy (866) 635-1838
Divorce (866) 635-6190
Personal Injury (866) 635-2689
Criminal Defense (866) 635-9402

Academic

: Conglomerate

Perhaps You Have Comments on the Latest Accounting Standard Amendments?

By Gordon Smith, Christine, Hurt, Vic Fleischer, Fred Tung, Lisa Fairfax, David Zaring

ADVERTISEMENTS

The latest notice by the banking agencies certainly suggests that it is true that accounting standards rule the world. I'll italicize some of the particularly notable bits:

The federal banking and thrift regulatory agencies are seeking comment on a proposed regulatory capital rule related to the Financial Accounting Standards Board's adoption of Statements of Financial Accounting Standards Nos. 166 and 167. Beginning in 2010, these accounting standards will make substantive changes to how banking organizations account for many items, including securitized assets, that are currently excluded from these organizations' balance sheets.

The agencies are issuing the proposal to better align regulatory capital requirements with the actual risks of certain exposures. Banking organizations affected by the new accounting standards generally will be subject to higher minimum regulatory capital requirements. The agencies' proposal seeks comment and supporting data on whether a phase-in of the increase in regulatory capital requirements is needed. It also seeks comment and supporting data on the features and characteristics of transactions that, although consolidated under the new accounting standards, might merit an alternative capital treatment, as well as on the potential impact of the new accounting standards on lending, provisioning, and other activities.

So, less off-balance sheet action, and higher capital requirements for financial institutions. One might call it regulatory reform through the Federal Register. And it is FASB that is to blame! You can submit your comment in the following manner:

Go to http://www.regulations.gov. Under the ?More Search Options? tab click next to the ?Advanced Docket Search? option where indicated, select ?Comptroller of the Currency? from the agency drop-down menu, then click ?Submit.? In the ?Docket ID? column, select ?OCC-2009-0012?

How hard could that be? The banking agencies await the insights of the intelligent readers of this here website.

Full post as published by Conglomerate on August 26, 2009 (boomark / email).