At the American Securitization Forum (ASF) Sunset Seminar held last Wednesday, speakers were predicting the death of securitization because of the implementation of the Financial Accounting Standard Board’s (FASB) Financial Accounting Standards (FAS) No. 166, Accounting for Transfers of Financial Assets, an Amendment of FASB Statement No 140 and FAS No. 167, Amendments to FASB Interpretation No. 46. The Seminar tackled the impact and collateral consequences these changes might have on the overall securitization and credit markets.
Participants at the gathering also reacted to last Tuesday’s release by the Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corp., and the Office of Thrift Supervision (OTC) of a request for comment on the proposal to modify their general risk-based and advanced risk-based capital adequacy framework for eliminating the exemption of certain consolidated ABCP programs from risk-weighted assets.