A Federal Deposit Insurance Corp. (FDIC) plan to restrict securitizations is drawing intense opposition from bankers, who claim it would damage the secondary market.

In a December proposal, the agency said it was considering imposing conditions to protect securitized assets from FDIC seizure after a bank failure, including a "skin in the game" requirement, a minimum hold period for underlying loans and limits on the number of tranches.

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.