In late October, US financial regulators approved a new ruling requiring the country's lenders to retain a degree of credit risk when selling on securitised mortgages and other loans to investors. Initially endorsed by the Federal Deposit Insurance Corp (FDIC), the Office of the Comptroller of the Currency and the Federal Finance Housing Agency, with the Federal Reserve and Securities and Exchange Commission set to follow, the ruling follows years of debate between industry representatives and regulators over the extent to which ordinary mortgages would be exempt from these risk retention measures.
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