Mapping the Harbor: FDIC Clarifies Securitization Safe Harbor Rules

February 21, 2012
The FDIC’s securitization safe harbor rules adopted in 2010 were meant to clarify the criteria a securitization must satisfy in order for the FDIC to forebear exercising its statutory repudiation powers with respect to assets transferred into a securitization by an insured depository institution. However, questions were raised with respect to their practical application. Earlier this month, the FDIC issued guidance on six aspects of the safe harbor rules. This update discusses these clarifications.