Posts Tagged ‘Federal Deposit Insurance Corp’

FDIC May Tie Underwriter, Rater Pay to Asset-Backed Performance

Thursday, November 19th, 2009

The Federal Deposit Insurance Corp. may force underwriters and raters of asset-backed securities created by banks to be compensated based on the bonds’ performance, an agency official said.

Such a requirement may be part of new rules for bank securitizations that the FDIC staff proposes at an agency board meeting next month, Michael Krimminger, special adviser for policy to FDIC Chairman Sheila Bair, said today in a telephone interview.

Read the whole story @ Bloomberg