The FDIC’s only safe harbour is from itself: Joseph Mason column

The US Court of Appeals has ruled against the FDIC in a case that gave rise to the regulator’s original safe harbour provisions for securitisation deals.

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While the securitisation world remains aflutter with concerns over the Federal Deposit Insurance Corp’s safe harbour rules, judicial review continues to chip away at the idea.

The original FDIC safe harbour statement was necessitated by the regulator’s treatment of securitisations in the NextBank and First Consumers National Bank failures.

In the autumn of 2001, regulators forced NextBank to reclassify losses previously booked as “fraud losses” as “credit losses”, making its securitisation deals

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