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Volume 2009 - Number 26 | July 2, 2009
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OTS Provides Updated Guidance on Appropriate Risk Weighting of Downgraded MBS and ABS

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...

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