EC’s blind backlash against ABS creates an unholy mess

17 Jul 2008

The securitisation industry disliked one proposal from the European Commission to reform the capital treatment of securitisations. So the EC has hit back with a completely different proposal that seems much worse — and given the industry just two weeks to respond. Regulators and the industry badly need to get round a table and thrash out a sensible deal, as the latest proposal looks disastrous.

This week the European Commission will end its consultation on a radical change to the Capital Requirements Directive — just two weeks after it began.

The CRD, you will recall, is the EC directive that implements Basle II. But in its latest form the implementation is more of a ...

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