I don't want to waste anymore time on this than I have to. Let me just say that the SEC's latest bogus attempt to prevent another securitized asset blow up is a complete joke.
The SEC is expected to recommend that the Wall Street firms underwriting asset-backed securities be required to hold 5 percent of the loans. Asset-backed securities in this case includes mortgages (although they are really mortgage-backed securities), credit card, auto and other loans.
Notice the headline - "SEC Seeks Tighter Rules on Asset-Backed Securities."
With some "skin in the game," the thinking goes, the firms would be more careful to ensure that borrowers are properly screened.
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