Securitization Safe Harbor Extended Through September By FDIC

The Federal Deposit Insurance Corp.’s board voted on Thursday to extend its safe harbor for securitized assets through September.

The move puts off a decision on a plan which will make banks more accountable for asset backed securities. FDIC Chairman Sheila Bair said that the move will allow industry participants and regulators more time to decide on government policy in the future.

Bair said, “We hope to foster a sustainable securitization market that emphasizes transparency, improved clarity in transaction structures and responsibilities, and incentives to support sustainable securitizations.”