At last week's meeting on the consolidation project, the Financial Accounting Standards Board (FASB) re-affirmed some of the positive-for-ABS tentative decisions that came to light when the board met on March 13.

First off, it seems likely the new rules will acknowledge that certain non-qualifying SPE structures, including those characteristic of arbitrage cash CDOs, will not necessarily have a single primary beneficiary. Such deals will not be subject to the proposed 10% outside equity requirement to avoid consolidation.

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