Washington — Standard & Poor's downgrade of the U.S. government's debt will not affect the risk-based capital requirements for U.S. banks, federal regulators said Friday evening.
The Federal Reserve, Federal Deposit Insurance Corp. and other federal banking regulators said in a statement that the lowering of the U.S. government debt rating from AAA to AA+ "will not change" the risk weights for Treasury securities and other securities issued or guaranteed by the U.S. government or government agencies.
"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," the regulators said.
