What risk weight is assigned to assets with an FDIC guarantee or subject to an FDIC assistance agreement?
The FDIC has various programs that provide assistance. • Senior unsecured bank debt that is guaranteed under the Temporary Liquidity Guarantee Program receives a risk weight of 20 percent. (Report on CCR445 – Claims on Domestic Depository Institutions) • For recent assets sales and acquisitions where the FDIC provides assistance, the assistance provided may vary from transaction to transaction, and it may be limited to tiered, i.e. it does not cover the full amount of the assets. Only the portion of losses covered by the FDIC would ordinarily qualify for 20% risk weight (report on CCR450 – 20% risk weight: other). The remainder would be the ordinary risk weight for the asset type (reported on the appropriate risk weight line) except where the OTS determines that a different risk weight is commensurate with the risk of the transaction.
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