In central bank-speak, it was about as punchy a statement as you’re ever likely to hear.
Last month, in a speech in Luxembourg, European Central Bank board member Yves Mersch blew the doors open on the debate raging between the ECB and regulators pointing to the obvious impediment to the revival of securitization in Europe.
“The Basle III proposals announced at the end of last year would lead to sharp increases in capital requirements for securitization exposures, particularly for senior high-quality tranches, despite the lack of EU default evidence to support such large changes,” Mersch thundered.
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