Federal Reserve Chairman Ben Bernanke said he supports an alternative to mortgage-backed securities to increase the financing pool for home loans. But Congress may first need to clarify how covered bonds would be treated in case of a bank failure, he said. Covered bonds are a primary source of financing from home and public-sector lenders in Europe. They have been used in the U.S. for about two years only by Washington Mutual and Bank of America.
Published in Brief: