NCUA's final Part 704 corporate rules, released Sept. 24, contained few revisions to the agency's initial proposal. Most rules will become effective 90 days following the publication of final regulations in The National Register.

The most noteworthy change was the simplification of limitations on permissible corporate investments. The regulator completely eliminated all subordinated securities and private-label mortgage-backed securities, rather than allowing them in limited concentrations as originally proposed.

"We decided they weren't worth the trouble," said Deputy Executive Director Larry Fazio, adding that the two types of investments were responsible for the vast majority of corporate losses. Original proposals to prohibit collateralized debt obligations and net interest margin securities were also included in the final rule.

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