Finally, some common sense and accountability-oriented reforms with regard to the nation's infamous asset-backed securities market? Perhaps.On Tuesday, the Federal Deposit Insurance Corporation (FDIC) voted 3-2 to require ABS sellers to keep 5% of the credit risk in exchange for a guarantee against seizure, The Associated Press reported Tuesday. The theory behind it is that banks with the 5% exposure will be more careful about originating mortgages/loans, etc.
Continue reading New FDIC Rule Would Have Asset-Backed Securities Issuers Retain 5% of Risk
New FDIC Rule Would Have Asset-Backed Securities Issuers Retain 5% of Risk originally appeared on BloggingStocks on Tue, 11 May 2010 18:30:00 EST. Please see our terms for use of feeds.
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Full story at http://www.pheedcontent.com/click.phdo?i=5336de5d0ef321980c88fce14ee13b9d
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