Covered bond provisions heighten FDIC concerns

Author: | Published: 18 Mar 2011

The Federal Deposit Insurance Corporation (FDIC) has come out against covered bond legislation proposed last week by US Representatives Scott Garrett and Carolyn Maloney, releasing a statement letter expressing its "significant concerns".

The proposed legislation sees the Treasury department assume sole authority in drafting safety and soundness requirements. In last year’s legislation, drafting the requirements was a joint effort between the banking regulatory agencies....