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Home » Store » Taxable » FDIC Issues ‘Dollar-for-Dollar’ ABS Residual Rule

FDIC Issues ‘Dollar-for-Dollar’ ABS Residual Rule

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Federal regulators have finalized a rule that will hike the amount of capital that banks and thrifts must hold against securitized residuals. Under the rule, approved last week by the Federal Deposit Insurance Corp., banks and thrifts have to hold capital equal to the residual interests they retain. Residual interests include any on-balance sheet asset created by the sale of financial assets that results in the institution retaining credit risk that exceeds the bank’s pro
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