The media obsession with the passage of Dodd-Frank largely sidesteps a larger issue at play. While we spend all of our time fixing ourselves, we are doing very little to insure other economies — ones we deal with extensively — are doing the same. Considering the reliance on global capital to keep economies going, the wake of Dodd-Frank is creating an environment where similar rules and regulations are being adopted in places such as Europe. Indeed, regulation seems to be bouncing back and forth across the pond. But no area is more linked than the secondary markets. What we are seeing now is this huge effort to lay a regulatory framework to make the securitization market safer, finally, after two years of deciding it was totally necessary to ease investor nerves. But what is the outline? It is important to note that the EU and the UK tend to take what they like from regulation and add to it. The result is often a gray area of interpretation, which is great for lawyers, but of little benefit to others. TO READ THE FULL STORY, SUBSCRIBE NOW.
Jacob Gaffney is formerly Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s).see full bio
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Jacob Gaffney is formerly Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s).see full bio