Risk Rules Pin 'Scarlet Letter' On Mortgages, Bank Groups Say

Law360, New York (October 22, 2012, 5:06 PM EDT) -- Bank lobby groups on Monday said that risk measures required under proposed federal rules for raising bank capital will essentially put a “scarlet letter” on mortgages and small business lending, and could impede the slow-churning economic recovery.

The comments from three top banking trade associations came on the final day for feedback on proposed rules for implementing the 2010 Basel III international banking agreement. The banking groups said the standardized approach to calculating risk weights for banks with total assets of $250 million or less would...
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