Amendments to the Capital Requirements Directive Adopted by European Parliament
7 May 2009
Mayer Brown Newsletter
The 5% retention represents an attempt by the EU to align the interests of originators, arrangers and bank investors in securitisations. Some have questioned this concept on the basis that markets rely on sellers and buyers having opposed interests which are resolved through the price mechanism and asymmetries of information between seller and buyer may be better dealt with through transparency, disclosure and due diligence.