The Federal Deposit Insurance Corp. announced today that the four bank regulators -- itself, the Office of the Comptroller of the Currency, the Office of Thrift Supervision and the Board of Governors of the Federal Reserve -- have agreed to extend until July 1 the interim final rules for capital treatment of ABCP conduit assets.
The interim final rules exempt conduit assets/liabilities that are consolidated under FIN 46 from incurring risk-based capital charges. The rules also propose a 20% risk-weighting conversion factor for eligible conduit liquidity lines to ABCP conduits. The industry, meanwhile, is lobbying for a lower conversion factor. The American Securitization Forum, for example, is asking that the 20% factor be reduced to 7%.