Originally appeared in the July issue of The Banking Law Journal.
— by Karsten Giesecke, Eric P. Marcus, Henry G. Morriello, Kurt Skonberg, Gary B. Bernstein and George M. Williams Jr.
The final Dodd-Frank risk retention regulations provide challenges for asset-backed commercial paper (“ABCP”) sponsors. A special rule tailored to “eligible ABCP conduits” is included in the regulations, but it may not always be feasible to comply with requirements for qualification as an eligible ABCP conduit or to meet the other requirements of that rule. In this first part of a two-part article, the authors review the basic principle of risk retention, explain the exception for eligible ABCP conduits under the regulations, and discuss utilizing the ABCP exemption, which would permit assignment of risk retention to participating originator-sellers. The second part of this article, which will appear in an upcoming issue of The Banking Law Journal, will discuss the availability of an exemption by limiting assets, risk retention by the ABCP conduit sponsor as they assess the alternative ways to comply with the new regulations, and issues faced by ABCP conduit sponsors.
Read part I of the The Banking Law Journal article in the attached PDF.
Also of Interest
- Benchmark Litigation Recognizes Kaye Scholer Practices and Partners Nationwide October 24, 2016 • Recognitions
- What’s Really Remarkable about the Appeals Court Ruling on the CFPB October 20, 2016 • Articles
- IFLR1000 Recognizes Kaye Scholer’s Global Presence, Practices and Lawyers October 19, 2016 • Recognitions
- Kaye Scholer Clients Achieve Nearly Full Recovery in Arch Coal Chapter 11 Proceeding October 14, 2016 • Client Successes
- Asghar Quoted in Airfinance Journal on Iran Aseman Airlines October 10, 2016 • Media Mentions
- Kaye Scholer Represents Investors in Volkswagen Diesel Emissions Litigation September 28, 2016 • Client Successes
- Bloomberg Business: Moriarty Returns for “Taking Stock” ETFs & Bitcoin Podcast September 22, 2016 • Media Mentions
- Axford and Williams Discuss UK Influence on EU Banking Rules in Law360 September 21, 2016 • Media Mentions
- Kaye Scholer Advises The Mortgage Lender on £250 Million Warehouse Financing September 2, 2016 • Client Successes