Toward a Better Regulatory System and Risk Transfer to Real Money Investors

Rasheed Saleuddin

Chapter 6 in Regulating Securitized Products, 2015, pp 150-174 from Palgrave Macmillan

Abstract: Abstract Some useful proposals for improved securitization regulation have already been adopted, while others are in their formative stages. Still other reforms have little hope of overcoming pro-banking lobbying. Useful rules are focusing on prudent and fair loan origination (Truth in Lending, for example) and on eliminating the most obvious leveraging opportunities. Other proposals that have no hope of preventing another crisis, such as the retention rule, have already become law. Some regulations are likely to negatively impact securi-tization, such as Solvency II. Finally, there are serious attempts to roll back regulation, in place or planned, while also encouraging the re-leveraging of the banking system in order to chase elusive growth targets. Banks are very focused on weakening the proposed Basel III risk-based capital requirements, for example.

Keywords: Banking System; Credit Default Swap; Capital Requirement; Real Economy; Asset Class (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-49795-6_6

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DOI: 10.1057/9781137497956_6

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