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Securitization People and Markets

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  • The Federal Deposit Insurance Corporation’s premium capture reserve account could be short lived. The controversial proposal had the market scrambling late March, and officials are looking at ditching it.
  • Investors are setting up real estate investment trusts in a bid to take advantage of the changing regulatory landscape, according to market officials.
  • Bank of America has shuffled its compliance team, moving its global compliance risk boss to a post in the bank’s efforts to manage the continuing fallout from subprime loans it took on as part of its 2008 purchase of defunct mortgage firm Countrywide Financial.
  • The European Banking Authority has set a core Tier 1 capital ratio of 5% for banks to pass the next round of stress tests, a level the EBA says is comparable to that in the U.S.
  • Europe is expected to top the U.S. for the first time in the amount of distressed debt banks need to sell, according to Strategic Value Partners.
  • Citigroup’s Australian unit has launched a A$760 million ($800.8 million) offer of residential mortgage-backed securities.
  • The Dubai Department of Finance is planning a $800 securitization linked to future revenues from Salik, the emirate’s road-toll system.
  • Henderson Global Investors is considering the launch of £250 million ($408.77 million) commercial property debt fund for later this year.
  • Lloyds Banking Group is said to have hired McKinsey & Co. to advise it on assets sales and restructuring as it awaits a report next week from the Independent Commission on Banking.