FHFA proposes removing 'reputational harm' from counterparty risk rules
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Table of Contents
The Federal Housing Finance Agency (FHFA) is proposing a change to its Suspended Counterparty Program. This program is used to manage risks associated with entities that do business with the agency.
Why it matters: This is a minor administrative change intended to clarify how the agency decides when a counterparty poses a risk. It shifts the standard toward more quantifiable data.
Who it affects
- Financial institutions and entities that act as counterparties to the FHFA
This is a proposed rule from the Federal Housing Finance Agency; readers should consult the Federal Register before relying on these changes.
Agency: Federal Housing Finance Agency
Source: Federal Register — read the official document