The risk to federally insured depository institutions of holding large concentrations of Fannie Mae and Freddie Mac mortgage-backed and corporate debt securities is being monitored by the Treasury Department, according to a Treasury official."Concentration is your enemy -- you want to be careful," said Wayne Abernathy, assistant secretary of the Treasury for financial institutions, in a question-and-answer session following his speech at a Ginnie Mae investor symposium. Mr. Abernathy said the department is awaiting the results of a study requested by Rep. Richard Baker, R-La., that is designed to size up GSE security concentration risk at depositories.
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