Lawmaker Questions Accounting Proposal
Rep. Marge Roukema, chairwoman of the House Banking subcommittee on Finance and Consumer Credit raised concern regarding a proposal that has been submitted by an AICPA taskforce. The proposal takes issue with the ability of banks to reserve against unspecified losses.
The proposal addresses a recommendation that financial institutions should be limited in their ability to reserve for anticipated losses in loan portfolios.
Roukema also questions how a proposal initiated by the AICPA can have an influence over guidelines set by the SEC and various banking regulators. She’s requesting the SEC to also report on how it is handling concerns regarding the level of loan loss reserves of any publicly traded financial institutions.