Friday, August 5, 2011

FYI: Feds Maintain Risk Weight for US Securities Following S&P Downgrade

As reflected in the mainstream news media, S&P downgraded the U.S.
government's and federal agencies' long term debt rating from AAA to AA+.

The federal banking agencies released the attached announcement, stating
that for risk-based capital purposes, the risk weights for Treasury
securities and other securities issued or guaranteed by the U.S.
government, government agencies, and government-sponsored entities will
not change.

The treatment of Treasury securities and other securities issued or
guaranteed by the U.S. government, government agencies, and
government-sponsored entities under other federal banking
agency regulations, including, for example, the Federal Reserve Board's
Regulation W, will also be unaffected.


Ralph T. Wutscher
McGinnis Tessitore Wutscher LLP
The Loop Center Building
105 W. Madison Street, 18th Floor
Chicago, Illinois 60602
Direct: (312) 551-9320
Fax: (312) 284-4751
Mobile: (312) 493-0874
Email: RWutscher@mtwllp.com


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