WHEN BANKS TRY TO HELP, AND REGULATORS STOP THEM. A reader emails:

Just a little Covid tidbit from the small business world. My bank reached out to me early this week and said that they were allowing all of their commercial customers to go to interest only payments simply by sending them a request. They called back today to say that their regulator, the OCC, had informed them that they would consider any such modifications TDR ( Troubled Debt Restructuring). Needless to say, the bank can no longer do it. It’s almost as if the bureaucracy is actively working against us.

Sheesh. Somebody get on this, pronto.

UPDATE: So pronto I think they were ahead of this post. As noted in the comments, the FDIC chair has has asked the FASB (Financial Accounting Standard Board) for a number of changes, including this one: “Excluding COVID-19-related modifications from being considered a concession when determining a troubled debt restructuring (TDR) classification.”

Okay, FASB, the ball’s in your court. Get it done, and communicated to banks.

ANOTHER UPDATE (FRIDAY): My reader emails: “That was the word that I received yesterday, too. The bankers were not over confident that FASB would listen.”