Although bankers are likely to have significant concerns about the risk retention proposal due next week, they appear to have won at least one victory already: a choice over how to structure risk that must be retained.

Under the plan, lenders must retain 5% of the risk of any loan — or pool of loans — they sell into the secondary market. But it has been unclear until now how that risk must be structured; namely, whether lenders must retain 5% of the overall risk or 5% of each tranche.

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