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The United States on Friday reassured its investors about its commitment to the government issues or guaranteed securities.
“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,” the Board of Governors of the Federal Reserve System (FRS) said.
The FRS Board issued a statement after Standard & Poor’s rating agency lowered the long-term rating of the US government and federal agencies from AAA to AA+.
“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, including, for example, the Federal Reserve Board’s Regulation W, will also be unaffected,” the FRS Board said in a statement.
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