Banking Regulators to Lower Risk-Based Capital Requirements for GSE Mortgage Securities
October 10, 2008
Federal banking regulators this week proposed to lower the risk-based capital requirements for bank and thrift holdings of MBS issued by Fannie Mae and Freddie Mac. Under the proposed rule change, depository institutions could classify their Fannie and Freddie MBS in the 10 percent risk-weight category. These assets currently require a 20 percent risk weighting, meaning banks and...