Parliament is dangerously naïve about securitisation: A Northern Rock special

The UK parliament and media do not understand structured finance. In one lawyer's words, "securitisation is being subjected to tabloid journalism."

(This article appears courtesy of International Financial Law Review, sign up for a free trial on their site

by Rachel Evans

Granite – Northern Rock’s master trust – has been mislabelled a tax dodge, an asset stripper and a threat to taxpayers. Such statements are inaccurate, naïve and dangerous.

In a late Commons reading of the Banking (Special Provisions) Bill – the government’s emergency legislation to nationalise UK mortgage lender Northern Rock – on Wednesday February 20, Members of Parliament expressed concern about the bank’s master trust securitisations, but failed to ask the right questions.

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