The Valuation of Securities Task Force is considering the possibility of granting some notes backed by the Federal Deposit Insurance Corp. (FDIC) an exemption from Securities Valuation Office (SVO) filing requirements.
The task force, an arm of the National Association of Insurance Commissioners (NAIC), Kansas City, Mo., was asked to look at notes backed by pools of assets from failed financial institutions that have been placed in receivership.
If defaults in an asset pool exceed a certain level, the FDIC is supposed to provide a guarantee. FDIC officials have said the guarantee is backed by the full faith and credit of the U.S. government.