In Brief : 3 Agencies to Scan Buyout Loans
WASHINGTON — Auditors from the three federal agencies in charge of regulating U.S. banks are teaming up for a special review of loans used to finance corporate buyouts, an Administration official said today.
Robert Clarke, the comptroller of the currency, told a congressional panel that the review would apply to loans of $20 million or more.
The Office of the Comptroller would join with the Federal Reserve Board and the Federal Deposit Insurance Corp. under the Shared National Credit Program, which assesses large loans shared by two or more banks.
At the beginning of three days of hearings on how to control the recent trend of leveraged buyouts, Administration officials continued to urge caution in adopting any new regulatory measures.
Treasury Secretary Nicholas F. Brady said Congress should move carefully to restrict buyouts.
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