Bank counsel fear that the Securities and Exchange
Commissions (SEC) reconsideration of registration
exemptions for asset-backed security (ABS) issuers could
further worsen securitisations plight under the Volcker
In-house lawyers experience with
regulator-interaction, shared at this weeks American Securitization
Forums (ASF) conference, suggests the rules
compliance requirements may not be enforced as strictly as
The proposed Volcker rule explicitly states that it should
not be construed to restrict the ability of financial entities
to securitise loans. Despite this, securitisation is
jeopardised by the rule in many ways.
The exemption is limited to loan securitisation vehicles,
and the prohibition of investment in private equity and hedge
funds defines fund...