Wall Street Regulators Weigh Rule Changes to Free Up Capital (2)

The Federal Reserve and other Wall Street regulators are considering changes to leverage limits and accounting rules as they look for ways to free up bank capital in response to the coronavirus crisis, according to three people familiar with the talks.

One easily achievable option would be to further delay the impact of a recent accounting rule change for “current expected credit losses,” or CECL. The agencies are discussing what can be done with CECL to ease pressure on banks, including a likely lengthening of its phase-in period, said the people, who requested anonymity because no decisions have yet been ...