Federal banking agencies have issued a joint press release regarding Standard & Poor’s lowering of the U. S. government’s long-term credit rating from AAA to AA+. In the release, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency stated the agencies will be providing guidance to banks, savings associations, credit unions, and bank and savings and loan holding companies (collectively, banking organizations) with regard to this action. “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 release stated. “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.”
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