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FDIC: S&P Downgrade Won't Affect Risk-Based Capital
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FDIC: S&P Downgrade Won't Affect Risk-Based Capital# Stock
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http://online.wsj.com/article/BT-CO-20110805-718199.html
Fed, FDIC, Bank Regulators: S&P Downgrade Won't Affect Risk-Based Capital
By Michael R. Crittenden
Of DOW JONES NEWSWIRES
Washington (Dow Jones)--Standard & Poor's downgrade of the U.S. government'
s debt will not affect the risk-based capital requirements for U.S. banks,
federal regulators said Friday evening.
The Federal Reserve, Federal Deposit Insurance Corp. and other federal
banking regulators said in a statement that the lowering of the U.S.
government debt rating from AAA to AA+ "will not change" the risk weights
for Treasury securities and other securities issued or guaranteed by the U.S
. government or government agencies.
"The treatment of Treasury securities and other securities issued or
guaranteed by the U.S. government, government agencies, and government-
sponsored entities under other federal banking agency regulations, including
, for example, the Federal Reserve Board's Regulation W, will also be
unaffected," the regulators said.
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