The Federal Deposit Insurance Corp. extended its temporary protection for securitized assets from failed-bank seizures to Sept. 30.

The move, announced late Thursday, allows the agency more time to consider long-term restrictions on the protection.

Before this year, securitizers enjoyed a safe harbor from asset seizures as long as a securitization met the criteria of being an off-balance sheet sale.

But a June rule by the Financial Accounting Standards Board that required on-balance sheet reporting for securitized assets invalidated the safe harbor.

In November, the agency said it would continue to exempt securitization until the end of this month while it considered a rule to rein a securitization industry that helped contribute to the crisis.

But amid controversy over the agency's proposed restrictions, unveiled in December, officials needed more time.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.