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SEC Seeks Information on Repurchase Agreements

Yesterday, the SEC's Division of Corporation Finance posted on its website a sample letter it has sent to "certain public companies" seeking information on "repurchase agreements, securities lending transactions, or other transactions involving the transfer of financial assets with an obligation to repurchase the transferred assets."  The letter seeks information from the recipient on the amounts of repurchase agreements and transactions the company has engaged in, the terms of the transactions, business reasons for the transactions, and accounting treatment (i.e., sale v. financing/lending).   In addition, the letter seeks information about how companies are applying FASB ASC 860-10, concerning accounting for transfers of financial assets, issued in June 2009. 

The full text of the the SEC's posting and the sample letter can be found at: http://www.sec.gov/divisions/corpfin/guidance/cforepurchase0310.htm