The Securities Industry and Financial Markets Association’s (SIFMA) U.S. Covered Bond Council criticized the Federal Deposit Insurance Corp.'s (FDIC) stance on covered bonds.

At the Mortgages and the Future of Housing Finance Symposium, the FDIC said that with the proposed covered-bond legislation, investors would have “a super-priority in receivership” and their claims would essentially be back-stopped by the FDIC.

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