Agencies Issue Guidance on Debt Downgrade
Written by Steve Van Beek
Late on Friday, the banking agencies - including NCUA - issued guidance on the debt downgrade by S&P.
The full language of the guidance is below:
  "Earlier today, Standard & PoorâÂÂs rating agency lowered the long-term rating of the U.S. government and federal agencies from AAA to AA+.  With regard to this action, the federal banking agencies are providing the following guidance to banks, savings associations, credit unions, and bank and savings and loan holding companies (collectively, banking organizations).
    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 governmentsponsored entities will not change.  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 BoardâÂÂs Regulation W, will also be unaffected."Â