FDIC reassures the market with safe harbour extension

13 Nov 2009

The Federal Deposit Insurance Corporation (FDIC) agreed this week to grandfather the safe harbour accorded to existing securitisations when they come on balance sheet at the end of the year.

Under the FDIC’s Securitisation Rule, securitisations accounted for as a true sale are not subject to clawback should the originator become insolvent.

Fears that the FDIC might seize assets from securitisations brought back on balance sheet by changes to accounting rules brought parts of the resurgent US securitisation market ...

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