While I understand being skeptical, this article is terrible and provides next to no information about the issue.
So the EU wants to “resurrect”, “breathe new life into”, “revive” securitization? How? What changes are proposed? Which regulations are supposed to be dropped?
And while the practice may have aggravated the 2008 financial crisis, it was caused by the US subprime market, as the article itself mentions.
Brussels now wants to loosen the rules governing the practice, meaning banks would need to put aside less capital against the loans they trade, as well as easing due diligence and reporting rules around the practice. But the Commission insists enough safeguards will remain to protect against a repeat of 2008.
Again, what rules are supposed to be eased, what safeguard would remain?
There is no information here for us to judge how risky this actually is. We just have to trust Politico’s word.
And quite frankly, I do not find Politico - part of the Axel Springer group - trustworthy enough.
While I understand being skeptical, this article is terrible and provides next to no information about the issue.
So the EU wants to “resurrect”, “breathe new life into”, “revive” securitization? How? What changes are proposed? Which regulations are supposed to be dropped?
And while the practice may have aggravated the 2008 financial crisis, it was caused by the US subprime market, as the article itself mentions.
Again, what rules are supposed to be eased, what safeguard would remain?
There is no information here for us to judge how risky this actually is. We just have to trust Politico’s word.
And quite frankly, I do not find Politico - part of the Axel Springer group - trustworthy enough.