‘Gold standard’ enigma unravelled

The UK chancellor, Alistair Darling, will reportedly publish proposals in next week’s Budget to put an official seal of quality on securitisations backed only by high quality mortgages. The move comes after the Treasury select committee published its report on financial stability and transparency, with recommendations for securitisation and the rating agencies. EuroWeek explores whether Darling’s proposal will really unlock the RMBS market, or if there could be dangerous unintended consequences.