NEWS RELEASE 05/21/01

FASB Issues Technical Bulletin, Effective Date for Certain Financial Institutions of Certain Provisions of Statement 140 Related to the Isolation of Transferred Financial Assets

Norwalk, CT, May 21, 2001—The Financial Accounting Standards Board (FASB) has issued for comment a proposed Technical Bulletin, Effective Date for Certain Financial Institutions of Certain Provisions of Statement 140 Related to the Isolation of Transferred Financial Assets. The document is available on the FASB website at www.fasb.org.

This Technical Bulletin was prepared based on the staff's answers (issued on April 19, 2001) to questions about the isolation of assets transferred by financial institutions. The staff and Board agreed that additional transition time was appropriate for constituents because clarification was made after the effective date of Statement 140. This proposed Technical Bulletin defers the effective date for certain provisions of Statement 140 under specified circumstances.

The FASB is requesting that comments on the proposed Technical Bulletin be received by June 1, 2001.

About the Financial Accounting Standards Board

Since 1973, the Financial Accounting Standards Board has been the designated organization in the private sector for establishing standards of financial accounting and reporting. Those standards govern the preparation of financial reports and are officially recognized as authoritative by the Securities and Exchange Commission and the American Institute of Certified Public Accountants. Such standards are essential to the efficient functioning of the economy because investors, creditors, auditors, and others rely heavily on credible, transparent, and comparable financial information. For more information about the FASB, visit our website at www.fasb.org.