Bank Regulators May Curb Mortgage Investments: Banks,...

Bank Regulators May Curb Mortgage Investments: Banks, thrifts and credit unions could be effectively barred from investing in certain mortgage-backed securities considered high-risk by federal regulators, according to a draft proposal obtained by Reuters. The move, which has been anticipated for some months, could force the institutions to either sell the securities or price them at the present market value, which could take a big bite out of their balance sheets. A board of federal regulators--the Federal Financial Institutions Examination Council--is set to meet today to consider adopting the proposed policy.