WASHINGTON - The Federal Reserve and other bank regulators said on Friday Standard & Poor's US debt downgrade would not affect the treatment of Treasury securities for risk-based capital purposes or under other bank rules. "For risk-based capital purposes, the risk weights for Treasury securities and other securities issued or guaranteed by the US government, government agencies, and government-sponsored entities will not change," bank regulators said in a statement. "The treatment of Treasury securities and other securities issued or guaranteed by the US government, government agencies, and government-sponsored entities under other federal banking agency regulations ... will also be unaffected," they added. The statement was also issued under the auspices of the Federal Deposit Insurance Corp, the National Credit Union Administration and the Office of the Comptroller of the Currency.
(photo credit: The Jerusalem Post)