* Compass Bancshares reported that it has terminated one of its two asset-backed commercial paper conduits in December 2002. Its remaining conduit, Sunbelt Funding Corp., is structured as a FAS 140 QSPE, and the company believes it is outside the scope of FIN 46. Sunbelt held approximately $1.1 billion in assets at year-end.
* Eaton Vance, an investment manager, reported that FIN 46 could impact how it accounts for about $1.6 billion of assets in CDOs. Eaton Vance is collateral manager on several deals.
* First Tennessee reported that it could consolidate about $232.6 million in assets (loans) sold into a commercial paper conduit. Also, First Tennessee has about $30 million in a lease arrangement facility potentially subject to FIN 46.
* GE Capital Corp. disclosed that, among other assets in SPEs potentially subject to FIN 46, its total ABCP-related receivables that it sponsors or supports were about $42 billion at the close of 2002. GE's Edison Securitization conduit is the industry's largest multi-seller vehicle, with outstanding CP in the $30 billion-plus range.
* GMAC reported that it currently accounts for about $13.5 billion in mortgage warehoused assets as off-balance sheet. The warehoused assets are finance by CP issued by GMAC or bank-sponsored vehicle, sometimes via QSPEs. GMAC books $8.2 billion worth of government-insured or guaranteed mortgages, or warehouse and construction loans, that it has sold through QSPEs, as off-balance sheet. GMAC has an off-balance sheet facility called NCAT - currently at $10.8 billion - which purchases securitized assets from GMAC's automotive finance securitization program by funding in the CP market. Also, a GMAC facility called COLT contains $5 billion in assets, $4.6 billion of which is currently reported as finance receivables and loans. GMAC is considered the primary beneficiary of COLT, and is considering purchasing the third-party equity in the program and reporting COLT's assets as operating lease assets. GMAC's increase in equity would be the $188 million purchase of third party equity.
* HSBC Bank reported that it is the administrator on conduits with about $2 billion in combined assets that HSBC could be made to consolidate.
* Lincoln National Corp. reported that it could be made to consolidate about $1.3 billion in assets and liabilities associated with CDOs for which its is collateral manager, "if the fees earned by LNC for managing these CDOs are required to be included in the analysis of expected residual returns," the company states.
* Marshall & Ilsley reported that it sells auto receivables, totaling $713.8 million at the end of 2002, into a multi-seller ABCP conduit sponsored by another entity. M&I also reported that it security arbitrage conduit, structured as a QSPE, currently has $182 million worth of securities supporting outstanding CP.
* Performance Food Groups, a food service distributor, reported that its receivable securitization facilities would not be impacted by FIN 46 accounting. The company does however believe it may be forced to consolidate assets associated with two operating lease facilities, totaling about $57 million.
* PNC Bank reported that its Market Street Funding Corp. ABCP conduit has assets totaling $3.0 billion. Also, PNC's asset manager subsidiary BlackRock is portfolio manager on CDOs with assets at $2.1 billion. PNC believes it can structure BlackRock's CDO outside of the scope of FIN 46.
* TECO Energy has about $45 million in potentially consolidated equipment assets related to a sale lease backed facility. The company is party to several real estate development-related LLCs that may be VIEs, which TECO may have to consolidate. Assets in these LLCs total about $32 million.
* Salomon Smith Barney Holdings, a brokerage subsidiary of Citigroup, reported that it may be forced to consolidate as much as $1.4 billion in assets and liabilities related to structure finance entities.
* Synovus Financial reported that it may be required to consolidate about $93 million associated with a operating lease, plus the SPE's results of operations, including depreciation and interest expense
* On a side note, Bristol Myers Squibb believes that it is reasonably possible that ImClone will meet the criteria to be considered a variable interest entity and that it will be required to consolidate the assets and operations of ImClone onto its balance sheet. As of December 31, 2001, ImClone had total assets of $474 million, a total stockholders' deficit of $5 million, and an accumulated deficit of $346 million. For the year ended December 31, 2001, ImClone had a $102 million net loss.
Special thanks again to Marty RosenblattSource: Public filings with the SEC
