The Federal Deposit Insurance Corp. (FDIC) on Aug. 23 came out with its quarterly list of problem banks. The list decreased for the first time since the start of the financial crisis.

This dip, according to a report by Moody's Investors Service, in FDIC problem banks will have a positive effect on TruPS CDOs issued privately by small and midsize regional banks. This is because TruPS CDOs from problem banks have shown a higher frequency of defaults and deferrals versus those from non-problem banks, the rating agency said. 

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