The case examines the accounting for loan losses at a large bank, how a bank sets its Allowance for Loan and Lease Losses (ALLL) on its financial statements. ALLL, and the rules that set them, determine when banks would and would not extend loans, which significantly impacts the economy. The case looks at the new current expected credit loss method (CECL) introduced in January 2020 and compares it with the prior incurred loss method that had existed for decades. The incurred loss method was a rules-based method that set loss reserve levels by looking at both the historical performance of loans and at current economic conditions. CECL was a principles-based method that set loss reserve levels by considering past loan performance, current economic conditions, and also expected future losses. The case also explores what banks, regulators, and investors thought about the new method. Both bankers and regulators called CECL the biggest change ever to bank accounting. JPMorgan Chase CEO Jamie Dimon called CECL accounting crazy. Financial Accounting Standards Board member Hal Schroeder indicated CECL would leader to a safer financial system and a more resilient economy. Investors and analysts were trying to figure out the new CECL method and what impact it would have on financial statements.