Still, the ABA says banks are not about to start raising more capital until they hear from regulators whether GAAP reporting applies to their regulatory cushion. Ideally, banks would have liked to have seen FASB and bank regulators come out with rules at the same time, notes Fisher.
But since that opportunity has passed, the ABA is lobbying regulators for a three-year transition period if banks are required to use FAS 166 and FAS 167. During the first year, no additional capital would be required, with new capital requirements phased in over the next two years.
Reader CommentsDisplaying 3 of 5
Firozali A Mulla
Sep 8, 2009 9:22 AM ET
Will Bank Regulators Diverge from GAAP?
Will Bank Regulators Diverge from GAAP? Will the blue Whale, be saved from the extinctions? Once we had USA … more
Robert Boyd
Aug 25, 2009 10:10 PM ET
Once Upon a Time
When banks once operated as free-standing entities - before bank holding companies became the norm and required to file … more
Marcelle Green
Aug 25, 2009 12:11 PM ET
GAAP
It will be interesting to see how this will affect other businesses. If the banking industry moves away from GAAP what … more
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