FDIC proposes rules for securitization, bank wills

The U.S. Federal Deposit Insurance Corp. proposed in a split vote to extend protection to securitizations backed by consumer debt that meet certain standards. Banks would need to retain some of the risk to gain the guarantee. Two of the five members of the FDIC board voted against the proposal, saying other financial firms would be at a disadvantage because the plan would apply only to banks. The FDIC also proposed a requirement that major banks develop a plan for self-dismantling should they run into trouble.