Last week the FDIC approved its final Safe Harbor Rule regarding securitization. That something that sounds so good could be so bad leaves you thinking: can’t we catch a break in trying to repair this damaged economy? To set the stage a bit, the FDIC has a suite of powers, while acting as conservator or … Continue Reading
Back from vacation … The sheer joy of re-engagement cannot be captured in words. But, can there be a better way of restarting than perusing FinReg? Being the parochial structured finance lawyer that I am, I start with Subtitle D with the Potemkin village-like name of "Improvements to the Asset Backed Securitization Process" and Section … Continue Reading
The push for covered bond legislation – left on the cutting room floor when Fin Reg. was finalized during a marathon session last week (or should I say finalized subject to Senator Scott Brown’s continuing review) – is coming under renewed discussion by Congress (led by Representative Scott Garret) and the FDIC. The FDIC balked … Continue Reading
Community banks – long touted as the “next domino to fall” during this late unpleasantness – were expected to be a significant source of distressed assets for savvy investors. However, many are finding the FDIC Structured Loan Sale Program a long and bumpy road for investment. Historically, the FDIC operated to separate the wheat (failed … Continue Reading
Earlier this week, Representative Scott Garrett (R-NJ) introduced an amendment to the proposed financial reform legislation that will establish a regulatory framework for a covered bond market in the United States. The House side of the reconciliation committee quickly passed the measure – the Senate side is now considering it. This development is welcomed news … Continue Reading
FASB wants to expand Fair Value to other financial assets. That bears repeating: FASB has published an Exposure Draft that would extend the dubious joys of fair value accounting to ALL financial assets. I so wish I was making this up. On May 26, 2010, FASB published this missive. Fair Value seems to hold a … Continue Reading
As if we didn’t have enough trouble already, we’re now caught in the political cross-fire between Sheila Bair at the FDIC and the rest of the regulatory apparatchnik of the capital markets. We all commented last week on the FDIC’s Advanced Notice of Proposed Rulemaking (“ANPR”) on the new safe harbor for bank securitization. It seems little … Continue Reading
