Until the Federal Reserve Board of Governors makes a formal determination and publishes it, the staff will not recommend enforcement action against any bank that sponsors and consolidates an ABCP conduit under FIN 46 and chooses not to treat the CP as deposits under Regulation D or Regulation Q.

This notion was made clear by the Fed to the American Securitization Forum, said Jason Kravitt, ASF chair of the Legal, Regulatory, Accounting and Tax Committee.

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