Testimony on the State of the Securitization Markets

Abstract:     
In this May 18, 2011 testimony before the Subcommittee on Securities, Insurance, and Investment of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, I suggest certain regulatory responses to improve securitization. Certain of securitization’s problems are typical of problems we must face in any innovative financial market: that increasing complexity, coupled with human complacency (among other factors), will make failures virtually inevitable. Regulation must respond to this reality by putting into place, before these failures occur, responses that supplement regulatory restrictions intended to prevent failures.

Number of Pages in PDF File: 18

working papers series