SPE Consolidation Proposal Could Shrink CDOs, Multi-Seller Commercial Paper Market, Issuers Warn
September 6, 2002
Securitization market participants warned the Financial Accounting Standards Board last week that its proposal to require consolidation of special-purpose entities, or SPEs, for financial reporting purposes could pose big problems for securitizers. The controversial proposal’s comment period ended on Aug. 30 amid growing concerns that it could seriously affect securitization and lead to higher transaction costs, less credit for consumers and businesses, and