Regulators must act on securitization before it is too late

By Joseph McDevitt
28 Jan 2014

When Mario Draghi said — for the second time— that the ECB would consider buying ABS to boost Europe’s economic prospects, everyone took note. Everyone, it seems, except Europe’s regulators, who have shown a reluctance to change their anti-securitization tack. It is time for them to swallow some pride and roll back the harshest securitization regulation — before it is too late.

Speaking at the World Economic Forum, Draghi ruled out any sort of conventional quantitative easing through government bond or corporate debt purchases, but said the ECB would consider buying bank loans bundled in a “proper way”; in other words, asset-backed securities.

Unfortunately, even if the ECB wanted ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial