The Financial Accounting Standards Board is getting an earful from credit unions concerned about its proposal that would require financial institutions to base loan loss allocations on expected losses, rather than incurred losses.
Sixty-two of the 153 comment letters posted on FASB's site are from credit unions – and that's not counting letters from credit union trade associations and vendors.
Most of the letters report that the proposed change would require credit unions to double or even triple current Allowance for Loan and Lease Losses, eating up revenue and capital just as financial institutions are gaining a post-recession foothold.
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