On January 21, the OCC, the FRB, OTS, and FDIC issued the final risk-based capital rule on the Financial Accounting Standards Board’s adoption of Statement of Financial Accounting Standard 166, Accounting for Transfers of Financial Assets, Amendment of FASB Statement No. 140 (“FAS 166”) and Statement of Financial Accounting Standards No. 167, Amendments to FASB Interpretation No. 46(R) (“FAS 167”). FAS 166 and FAS 167 make changes to how banking organizations account for many items, including securitized assets that had been off the balance sheets. Most banking organizations are required to implement the new standards of FAS 166 and FAS 167 by January 1, 2010. Banking organizations affected by FAS 166 and FAS 167 generally will be subject to higher risk-based regulatory capital requirements intended to better align risk-based capital requirements with the actual risks of certain exposures. Please click here to read our client alert.