Late: CECL Saves B of A and Wells Fargo's Pofits.
Yesterday we introduced CECL, The Current Expected Credit Loss. A new accounting standard introduced by the Financial Accounting Standards Board at the end of last year.
Less than a year old, and already this somewhat arcane new standard is having a profound effect on the earnings numbers released today.
Earlier this morning, the final two of the nation's big four banks announced their third quarter results. And both the Bank of America and Wells Fargo Bank used the new standard to transform their earnings.
So let's take a closer look at this CECL, and why its having such an impact on today's earnings.
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