February 24, 2016 Alert - This Morning at 10:00 a.m.: SFIG To Testify Before Congress On Liquidity

This morning at 10:00 a.m. (EST), SFIG Executive Director Richard Johns will testify before the House Financial Services Subcommittee on Capital Markets and Government Sponsored enterprises at a hearing on “The Effects of Dodd-Frank and Basel Requirements on Liquidity in the Fixed Income Market and Securitizations.” 

Richard will present the membership’s views on liquidity in the ABS marketplace, with a focus on global regulatory issues that affect lending across all asset classes, including: (1) the Liquidity Coverage Ratio (“LCR”) rules, (2) European and international regulatory efforts to create standards for high-quality securitizations, (3) Basel III capital rules that increase capital standards for bank balance sheets, and (4) the new Fundamental Review of the Trading Book (“FRTB”) rules that increase capital for the trading book.

“All of these rules, particularly when combined, pose a serious threat to securitization as a critical source of funding for the real economy,” states Johns in his testimony.

SFIG’s testimony will also discuss two bills under consideration by the committee: H.R. 4166, a bipartisan bill that would create an SFIG-supported workable option for CLO risk retention, and (b) a discussion draft that would modify the risk retention requirements for certain CMBS loans.

To view SFIG’s testimony, please click here. To view a webcast of the hearing, please click here. To view the witness list, testimony and bills under consideration, please click here.

To view SFIG’s position on the QCLO risk retention legislation, please click here. To view SFIG’s recent letter to the Basel Committee on capital treatment for simple, transparent and comparable securitizations, please click here. To view SFIG’s letter to the prudential regulators on the LCR rules, please click here. To view SFIG’s letter to the prudential regulators on the FRTB, please click here.

Please contact michael.flood@sfindustry.org for any questions regarding SFIG’s testimony.

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