Action | Amend Virginia Security for Public Deposits Act Regulations After Periodic Review |
Stage | Proposed |
Comment Period | Ended on 4/15/2022 |
The proposed regulations would apply a “haircut” to certain securities pledged by pooled institutions, mimicking the requirement for opt-out institutions. The proposal indicates that the haircuts would alleviate concerns about “liquidity, unreliable and inconsistent pricing and costs to execute sales of municipal securities, particularly in times of market instability.”
We oppose the proposal for the following reasons:
The concerns cited are not of the level that would indicate the need to adopt the proposed regulation.