Savings Groups Must OK Security Issuers Periodically: FDIC

Law360, New York (July 20, 2012, 8:28 PM EDT) -- The Federal Deposit Insurance Corp. on Friday issued a final rule that prohibits any insured savings association from acquiring a corporate debt security unless it confirms, before and after the acquisition, that the issuer will meet its financial commitments for the projected life of the investment.

“The FDIC expects savings associations to conduct appropriate ongoing reviews of their corporate debt investment portfolios to ensure that the composition of the portfolio is consistent with safety and soundness principles and appropriate for the risk profile of the institution as...
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