In more post-Enron Corp. buzz, new rules being discussed by the Financial Accounting Standards Board (FASB) could throw a wrench into the CDO machine. Among other issues, last Wednesday the FASB said it may triple the amount of outside equity capital required for non-qualifying special purpose entities to receive off-balance sheet treatment.

The prospect of this new rule, which has been looming over the market for the past several weeks, was a hot topic at certain panels during Information Management Network's CDO 2002 Conference, held last week at the Crowne Plaza Hotel in New York.

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