Lawmakers and regulators dispute the FDIC's securitization rule

Lawmakers and regulators started squabbling at a congressional hearing this week about a measure that would require lenders to retain 5% of credit risk when they securitize and sell debt. The Federal Deposit Insurance Corp. approved the "risk retention" rule earlier this week, rankling other regulators that need to adopt a similar regulation. Sen. Bob Corker, R-Tenn., asked FDIC Chairwoman Sheila Bair whether she had received input on the measure from other agencies. Bair defended the FDIC's move, saying the agency faced a deadline and needed to act.

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