Regulators are considering exempting bond issuers and banks from risk-retention rules if they meet tougher underwriting standards, sources said. The Federal Deposit Insurance Corp. plans to present the proposal for public comment, while other regulators are to consider it this week. "The agencies intended that these options would provide flexibility so that the risk-retention requirements not impede the re-emergence of robust securitization markets for non-exempt loans," the regulators wrote.

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