European Commission publishes today a Green Paper on the Capital Markets Union together with a new consultation on securitisation

Today, the European Commission publishes its Green Paper on the Capital Markets Union.  In the paper its sets out five priority for early action, of which the building of a sustainable securitisation market is one.  Underlying the seriousness with which the Commission is approaching the securitisation brief, together with the Green Paper was published a consultation on securitisation.  This consultation, with a May 13 deadline, requests stakeholder views on the notion of a bifurcated approach to the regulation of securitisation similar to that which PCS has been advocating since its inception.  In particular, the consultation explicitly addresses the possibility of a revision to the bank capital rules for bank investors in securitisations.  PCS views both these papers as milestones towards the creation of a strong and safe securitisation market in Europe.