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Home » Store » Taxable » FDIC Report Says Privatization Wouldn’t Impair Banks

FDIC Report Says Privatization Wouldn’t Impair Banks

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Stripping the GSEs of their ties to the federal government would definitely lower the value of their stock and obligations, according to the Federal Deposit Insurance Corp., but not enough to impair the standing of depository institutions that hold GSE investments. “Large concentrations at FDIC-insured institutions in investments that are directly issued or guaranteed by the GSEs have led some observers to view the banking industry as particularly vulnerable to erosion in the benefits
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