Questions and Answers on the Capital Treatment of Recourse, Direct Credit Substitutes, and Residual Interests in Asset Securitizations
May 30, 2002
Circular No. 11446

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

In a Supervisory Letter, the Federal Reserve Board announces that the Office of the Comptroller of the Currency, the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision have issued a question-and-answer document (pdf - 128kb) providing interpretive guidance regarding a final rule, effective January 1, 2002, on the capital treatment of recourse, direct credit substitutes, and residual interests in asset securitizations. The final rule (pdf - 333kb) is attached.

Questions on this matter may be directed to your relationship specialist at this Bank.