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Many asset-backed commercial paper professionals were in poor spirits following last Wednesday's Financial Accounting Standards Board meeting on the SPE consolidation exposure draft. Apparently FASB furthered its view that the financial SPE (FSPE) should not be incorporated into the final guidelines. Also, the silo approach, another interpretation that would have benefited the ABCP market, looks like it will be more difficult to adopt as per these subsequent discussions. Cited from Deloitte & Touche's informal post-meeting commentary, "A transferor would not adopt the silo approach unless they had specific rights and obligations with respect to specific liabilities of the conduit."

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