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ARTICLE · 31 AUGUST 2009

The Other Shoe Drops — US Bank Regulators React to Securitization Accounting Changes

Mayer Brown
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On August 26, 2009, the US Federal bank regulators released a notice of proposed rulemaking (NPR) that responds to recent changes in US accounting standards for securitizations (see our June 22, 2009, Client Update "Big Changes to Securitization Accounting").

United StatesFinance and Banking
Carol Hitselberger
Carol Hitselberger
Jason Kravitt
Jason Kravitt
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Originaly published August 27, 2009

Keywords: Securitization, US bank regulators, securitization accounting, special purpose entities, asset-backed commercial paper, variable interest entities

On August 26, 2009, the US Federal bank regulators released a notice of proposed rulemaking (NPR) that responds to recent changes in US accounting standards for securitizations (see our June 22, 2009, Client Update " Big Changes to Securitization Accounting"). Under the accounting changes:

  • Banks (among other entities) that have traditionally achieved sale treatment in securitizations of their receivables will no longer be able to do so using many traditional "plain vanilla" structures, especially those that rely on qualifying special purpose entities (SPEs); and

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