Banks slam '10%' rule for new structured deals

Debate continues over the European Commission's proposed amendment to its Capital Requirements Directive. In a clear response to the turmoil caused in the financial system by problems in the structured finance market, the EC wishes to ban regulated European financial institutions from buying structured deals unless the originator keeps a 10% interest. The move is unnerving for many market participants concerned by the prospect of undue regulatory intervention in the light of the crisis in credit

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