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Banks and thrifts added $121 billion in mortgage-backed securities to their portfolios in the first quarter as their combined MBS investments topped $1 trillion for the first time.
The Federal Deposit Insurance Corp. quarterly report on bank and thrift performance shows that FDIC-insured depositories held $1.1 trillion in MBS as of March 31.
FDIC officials attribute the jump in MBS to strong originations in the first quarter and a desire by banks to convert those loans into more liquid securities....