Sources on a Standard & Poor’s conference call this morning -- which was originally focused on FIN 46 and its impact on ABCP conduits -- believe the amendment to FAS 140, if true to the expected Exposure Draft, could be a greater challenge to the securitization markets than FIN 46. FIN 46 is the set of consolidation guidelines issued by the Financial Accounting Standards Board in January.

One of the main drivers of the FAS 140 amendment was to address the FIN 46 QSPE exemption, said project coordinator Ron Lott, who drafted FIN 46 and is also the project coordinator on the 140 Exposure Draft.

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