• A Peek at the Future of the FDIC Securitization Safe Harbor
  • December 30, 2009 | Authors: Carol A. Hitselberger; Jason H. P. Kravitt; Jeffrey P. Taft
  • Law Firms: Mayer Brown LLP - Charlotte Office; Mayer Brown LLP - Chicago Office; Mayer Brown LLP - Washington Office
  • On December 15, 2009, the Board of the Federal Deposit Insurance Corporation (FDIC) approved publication of an advanced notice of proposed rulemaking (ANPR) concerning the FDIC’s rule (the Safe Harbor) relating to the treatment of securitizations (and participations) in receivership or conservatorship (12 CF 360.6). The ANPR follows up on an interim rule that the FDIC adopted in November (the Interim Rule). Both the ANPR and the Interim Rule are responses to recent changes in US accounting standards for securitizations. While the Interim Rule assists with transactions completed through March 31, 2010,5 the ANPR provides an initial indication of what safe harbor(s) the FDIC may eventually provide for transactions completed after that. We refer to the period from November 12, 2009 (when the Interim Rule was adopted) through March 31, 2010 (or any later date to which the FDIC may eventually extend the transitional relief provided by the Interim Rule) as the Transition Period.