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

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