"In order to control for [adverse selection of banks by the arranger of CDOs], Moody's takes a four-step approach for banks that are not rated by Moody's.
First, each bank should satisfy the following prescreening attributes:
- Financial Institution insured by the Bank Insurance Fund or Saving Association Insurance Fund.
- Five years minimum of operating history.
- Minimum asset size of $100 million.
- Not under investigation by any regulatory body.
[additional steps omitted in the name of brevity]
- No restrictions placed on its operations by any regulatory body."