18 Pages Posted: 24 May 2011
Date Written: May 17, 2011
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.
Suggested Citation: Suggested Citation
By Nizan Packin