Double Count Accounting Fix Advances Despite Big Bank Angst (1)

Accounting standard-setters agreed Wednesday to fix loan loss accounting rules that critics say make bank merger deals look bad on paper, despite mixed feedback on the proposed solution.

Complaints about the so-called “double count” of credit losses when banks buy or acquire healthy loans meant the board had to change existing rules even though support for the change wasn’t universal, a majority of the Financial Accounting Standards Board said.

Board members acknowledged that many banks, including JPMorgan Chase & Co. and Citigroup Inc., had reservations about the plan FASB issued for public feedback in June, as did auditors concerned ...