FSOC to discuss CECL, non-bank financials, during secret session

The current expected credit loss (CECL) accounting standard will be one of the topics under discussion during the next meeting of the oversight group of federal financial regulators, set for next week.

The Nov. 7 meeting of the Financial Stability Oversight Council (FSOC), according to Treasury Secretary Steven Mnuchin (who currently chairs the group), including discussion of the CECL standard, will be held in closed session. In a release, Mnuchin cited a long disclosure for keeping the meeting secret:

In accordance with the Council’s Transparency Policy, which is available at www.fsoc.gov, this meeting will be held in a closed session to prevent the potential disclosure of information contained in or related to investigation, examination, operating, or condition reports prepared by, on behalf of, or for the use of, an agency responsible for the regulation or supervision of financial markets or financial institutions; information which would lead to significant financial speculation, significantly endanger the stability of any financial market or financial institution, or significantly frustrate implementation of a proposed agency action; information exempted from disclosure by statute or by regulation, or authorized under criteria established by an Executive Order to be kept secret; trade secrets and commercial or financial information obtained from a person and privileged or confidential; inter-agency or intra-agency memoranda or letters which would not otherwise be available by law; and to conduct administrative business of the Council.”

Other discussion topics at the meeting include: proposed amendments to FSOC’s interpretive guidance on nonbank financial company designations, the FSOC 2019 annual report, and a discussion of the activities of cloud service providers.

Thursday, Nov. 7, FSOC meeting announcement