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Board of Governors of the Federal Reserve System
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Press Release
October 19, 2010

Federal Reserve issues Report to Congress on
Risk Retention
For immediate release
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The Federal Reserve Board on Tuesday issued a report on the potential
impact of credit risk retention requirements on securitization markets.
The report was required by the Dodd-Frank Wall Street Reform and
Consumer Protection Act. The Dodd-Frank Act also requires the Federal
Reserve and other agencies to jointly implement risk retention
requirements for securitizers or originators of assets securitized through
the issuance of asset-backed securities.
The report highlights the significant differences in market practices and
performance across securitizations backed by different types of assets.
The report recommends that the agencies take these differences into
account when developing risk retention requirements in order to achieve
the objectives of the Dodd-Frank Act without unnecessarily impeding the
availability of credit.
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Last Update: October 21, 2010

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BOARD OF GOVERNORS of the FEDERAL RESERVE SYSTEM
20th Street and Constitution Avenue N.W., Washington, DC 20551