Proposed Capital Changes Will Further Harm Securitization, Reduce Liquidity, Banks Say
October 23, 2009
The changes to risk-based capital requirements that federal bank regulators are considering will slam the slim hopes for the non-agency MBS market, further dry up liquidity in the financial markets and compel lenders to significantly scale back their other lending activities, according to some of the nation’s largest mortgage banking institutions. Bank regulators are working to revise...