OTS Provides Updated Guidance on Appropriate Risk Weighting of Downgraded MBS and ABS
July 2, 2009
The Office of Thrift Supervision is telling institutions it regulates that they need to revise the risk-based capital classifications of MBS and other securities they hold if rating services downgrade the securities. The OTS and other banking agencies issued final risk-based capital standards back in November of 2001 that allow insured institutions to hold less capital...