On December 15, the FDIC approved an Advance Notice of Proposed Rulemaking to solicit comments for amendments to regulations which govern the treatment by the FDIC, as conservator or receiver, of financial assets transferred by an insured depository institution in a securitization or participation. The potential amendments would create a safe harbor to confirm legal isolation of assets transferred by a bank in a securitization or participation if certain conditions are satisfied, and are in response to FAS 166 and FAS 167 which will result in GAAP consolidation for many securitizations and thus cause the FDIC’s existing safe harbor to no longer apply.  Comments are requested within 45 days of publication of the Advance Notice in the Federal Register.  FDIC Release.  Advance Notice.  Orrick Alert.