Securitisation not to blame for the crisis: Fed’s Tarullo
Securitisation is not itself a flawed principle, said Daniel Tarullo, a governor of the Federal Reserve.
Tarullo said the demise of certain credit market features, such as poor mortgage lending practices was timely. But other straightforward securitisation markets should not be tarred with the same brush. His argument echoed recent comments from Axel Weber, the president of the Bundesbank.
He said that the causes of the crisis were deeply embedded in the financial system, and a response would
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