US regional banks unprepared for LCR as exemptions may prove narrow

The four largest US banks have been rebalancing their portfolios of mortgage-backed securities to comply with new bank liquidity rules, but regional banks have not followed suit. At least fourteen banks with assets ranging from $57bn to $361bn are still lobbying for special treatment, but regulators’ exemptions will most likely be limited, meaning the bid for Ginnie Mae securities will likely strengthen, experts say.