Banks struggle with conduits

US banks are struggling to restructure $230 billion of off-balance sheet commercial paper conduits that they will otherwise have to consolidate on their books. Christopher Jeffery reports

Banks in the US have missed a June 15 target set by the Financial Accounting Standards Board (FASB), to ensure that the risks associated with their asset-backed commercial paper (ABCP) conduits are demonstrably transferred to third parties, or face consolidating such vehicles onto their balance sheets. An accounting rule FASB passed earlier this year affects about $230 billion worth of off-balance-sheet conduits, according to rating agency Moody’s Investors Service. If brought on balance sheet

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