Banks get break they needed on loan workouts
Banks and credit unions are eager to take advantage of newfound flexibility for restructuring loans battered by the coronavirus outbreak.
Federal regulators and the Financial Accounting Standards board agreeing that short-term loan modifications tied to the pandemic do not have to immediately count as troubled-debt restructurings. Normally, any concession made to a borrower would trigger classification as a TDR.
It's a big boost for lenders because TDRs must be evaluated for impairme...