Financial Asset Securitization Investment Trust
Encyclopedia
A financial asset securitization investment trust (FASIT) was a type of special purpose vehicle used for securitization
of any debt and issuance of asset-backed securities, defined under section 1621 of the Small Business Job Protection Act of 1996
, , and repealed under section 835 of the American Jobs Creation Act of 2004
, . They were similar to a Real Estate Mortgage Investment Conduit
(REMIC) but could also securitize non-mortgage debts.
The United States Congress Joint Committee on Taxation
staff, in their investigation of the Enron scandal
, had recommended that FASIT rules be repealed as they were "not widely used in the manner envisioned by the Congress and thus have failed to further their intended purpose."
Securitization
Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations and selling said consolidated debt as bonds, pass-through securities, or Collateralized mortgage obligation , to...
of any debt and issuance of asset-backed securities, defined under section 1621 of the Small Business Job Protection Act of 1996
Small Business Job Protection Act of 1996
The Small Business Job Protection Act of 1996 is a United States federal law. Rep. Bill Archer sponsored the bill and it was signed into law on August 20, 1996 by President Bill Clinton.The stated intent of the bill is:...
, , and repealed under section 835 of the American Jobs Creation Act of 2004
American Jobs Creation Act of 2004
The American Jobs Creation Act of 2004 was a federal tax act composed of numerous tax credits for agricultural and business institutions. Included was the repeal of some excise taxes on fuel and alcohol, and the creation of tax credits for biofuels...
, . They were similar to a Real Estate Mortgage Investment Conduit
Real Estate Mortgage Investment Conduit
Real Estate Mortgage Investment Conduits, or "REMICs," are a type of special purpose vehicle used for the pooling of mortgage loans and issuance of mortgage-backed securities...
(REMIC) but could also securitize non-mortgage debts.
The United States Congress Joint Committee on Taxation
United States Congress Joint Committee on Taxation
The Joint Committee on Taxation is a Committee of the U.S. Congress established under the Internal Revenue Code at .-Structure:The Joint Committee is composed of ten Members: five from the Senate Finance Committee and five from the House Ways and Means Committee.The Joint Committee is chaired on a...
staff, in their investigation of the Enron scandal
Enron scandal
The Enron scandal, revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world...
, had recommended that FASIT rules be repealed as they were "not widely used in the manner envisioned by the Congress and thus have failed to further their intended purpose."