August 10, 2016
David Quirolo comments on the European Parliament’s Committee on Economic and Monetary Affairs (ECON)'s recently published additional draft of the proposed simple, transparent, and standardised (STS) securitization regulation. The amendments reveal conflicting opinion among MEPs that needs to be resolved before the ECON can publish its final report.
An excerpt from "ECON STS Amendments Show Ongoing MEP Support for 20% Retention," Leveraged Commentary & Data (August 10, 2016):
“The original intention of the changes was to stimulate the securitization market and to close any perceived holes in the current regulation. Instead a lot of the amendments will have the opposite effect,” notes David Quirolo, partner at Cadwalader, Wickersham & Taft. “It is also clear that there is still a significant misconception among MEPs of the role of the securitization market in the financial crisis, and there seems to remain a significant part of the political establishment who don’t see any benefit in promoting a securitization market in Europe.”