Long-Awaited FASB Exposure Draft
The Financial Accounting Standards Board is expected to issue an exposure draft on business combinations near the end of June. It would eliminate the pooling of interests method of accounting for the merger of mutual institutions. FASB is expected to give a 120-day comment period and will hold at least one public roundtable. ACB has been actively involved in this issue.

CURIA Bill Introduced in House
In addition to lowering capital requirements for credit unions, the recently introduced CURIA bill would raise the voting requirement for converting credit unions, essentially adding another roadblock to those credit unions seeking to convert to mutual institutions. ACB recently sent out Mission Possible: Containing the Credit Unions to urge community bankers to ask their representatives to oppose this legislation. Click here to send a letter to your representative. ACB is also working on charter choice legislation, which would guarantee financial institutions the right to choose their charter type.

Request for Comments on Auditor Engagement Letters
A proposed advisory issued by the Federal Financial Institutions Examination Council would prohibit banks from entering into engagement letters that would limit the liability of external auditors involving financial statement audits. The FFIEC will accept comments through June 9 on whether the prohibition would result in increased audit fees, whether fewer audit firms would be willing to provide external audit services to banks and whether smaller banks would be discouraged from voluntarily obtaining external audits. Click here to read the advisory. We encourage you to submit your comments to the agencies, and please share them with Dennis Hild at [email protected].

Directors Infopipeline
Don’t miss the Emerging Issues for Boards of Directors Teleconference on May 25, 2005. Recent laws have imposed additional requirements on board members and increased director liability. Join us to discuss the changing dynamics of board membership and recent regulatory requirements. Click here for more information and to register.