WASHINGTON (MNI) – Following is the text of a released Monday by
U.S. banking regulators announcing they will consider a risk retention
rule this week:
Agencies Announce Consideration of Risk Retention Notice of
Proposed Rulemaking The staffs of the Office of the Comptroller of the
Currency, the Federal Reserve, the Federal Deposit Insurance
Corporation, the U.S. Securities and Exchange Commission, the Federal
Housing Finance Agency, and the Department of Housing and Urban
Development (together, the agencies) announced that the agencies this
week are considering for approval a notice of proposed rulemaking that
addresses section 941 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act. All of the agencies participating in this joint
rulemaking process are expected to consider the rule this week and a
detailed announcement will be made when this process is complete. If
approved, the agencies will publish in the Federal Register a notice of
proposed rulemaking for public comment.
Section 941 requires the agencies to prescribe rules to require
that a securitizer retain an economic interest in a material portion of
the credit risk for any asset that it transfers, sells, or conveys to a
third party. The chairperson of the Financial Stability Oversight
Council is tasked with coordinating this rulemaking effort.
** Market News International Washington Bureau: 202-371-2121 **
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