FASB’s Decision to Eliminate QSPE Prompts Reconsideration of Accounting for MBS Swaps
June 20, 2008
The Financial Accounting Standards Board is considering revising the rules for “swaps” of loans for agency MBS as part of its efforts to eliminate qualifying special purpose entities, or QSPEs. The issue was presented at a FASB board meeting June 4 during a discussion regarding transferred financial assets and guaranteed mortgage securitizations. The discussion stemmed from the board’s...