Two interest groups which have traditionally been on the same side in terms of the Freddie Mac/Fannie Mae debate are now on opposing ends. FM Watch and America's Community Bankers (ACB) have both written to the Basel Committee Secretariat regarding their stance on the amount of regulatory capital the agencies must hold against their investments, with ACB emerging as an ally and FM Watch as foe.

In its letter to the Basel Committee, FM Watch urges the Committee to specify that public-sector entities (PSEs) that operate as corporate ventures should be treated as corporate risk in the Accord's standardized and internal ratings-based models.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.