xThe U.S. Regulators are likely going to drop from their risk-based capital guidelines the 25% cap on retained interest applied toward tier-one capital, Washington sources told ASR last week.

Beyond the obvious benefits to banking entities participating in securitization - both as investors and as issuers - this will allow other aspects of the risk-based capital rules to stimulate developing niches, including synthetic-risk-transfer securitizations and net interest margins.

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