The Savings and Community Bankers of America is urging banking regulators to review the effects of the Federal Financial Institutions Examination Council's latest pronouncement on its Supervisory Policy Statement on Securities Activities, which SCBA insists will reduce both available capital and profits.

In a letter to banking regulators dated April 22, the association expressed concern over the policy's language allowing the "orderly divestiture" of collateralized mortgage obligations designated as high-risk mortgage securities in a held-to-maturity portfolio.

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