Reuters has published an article quoting skeptical remarks made by Frederic Oudea, the boss of Societe Generale, on the impact of the Commission’s securitisation proposals. After an initial welcome of the Commission’s plans, these statements reflect the growing concern of many that despite 85% of the proposals being excellent, the 15% in need of further work may still derail the Commission’s ambition for a revived market. Investors concerns around the lack of a “common language” provided by third party certification, issuer concerns with the nature of the attestation required of them, general concerns about the issue of how a complex definition will be interpreted by the regulators, technical issues with the ABCP proposals and worries about the proposed new CRR bank capital calibrations as well as the absence, so far, of new proposals for insurance companies are the problems most often mentioned. However, the text is not yet finalised and so there remain many opportunities to improve the scheme and optimise the outcome.
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