US regulators propose standards to give securitisers skin in the game
Regulators release risk retention rule; publish a specific loan-to-value ratio for those mortgages that will be exempted
US regulators on Tuesday agreed proposals that will require originators and securitisers to hold a portion of their asset-backed securities, in a bid to prevent another crisis with its roots in securitisation.
The measures, which address a decisive part of the Dodd-Frank Act, establish rules that demand banks retain a 5% stake in a portion of the credit risk for any asset that it transfers, sells
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