Securitization allows banks to repackage and resell debt, famously explained by actress Margot Robbie in a bubble bath in the film “The Big Short.”

Securitization allows banks to repackage and resell debt, famously explained by actress Margot Robbie in a bubble bath in the film “The Big Short.”

The European Union wants to breathe new life into a financial practice most commonly associated with causing the 2008 financial crisis as it tries to jump-start banks’ lending to the economy.

On Tuesday, the European Commission will publish a package of legislation aiming to revive the industry of “securitization,” after strict postcrisis laws almost stamped out the use of the practice in the bloc.

Securitization is the practice where banks repackage and resell debt, famously explained by actress Margot Robbie in a bubble bath in the film “The Big Short.” The engineering allows banks to move some assets off their balance sheets, giving them more space to extend new loans.

  • AlbumEnglish
    1•8 days ago

    Financial regulations are written in law, and thus illegal to violate.

    • @[email protected]English
      1•8 days ago

      I see you’re focusing on semantics, and not the issues raised, which i can only assume is because you have no valid response to the issues and not the wording.

      • AlbumEnglish
        1•8 days ago

        It’s not semantics when what you’re saying doesn’t make sense and is contradictory to reality.

        Actually, I am not sure what issue you’re even raising because of how poorly you communicated.

        I thought about not responding at all, tbh, but then thought that it’s clear you think there is a some sort of material difference between regulation and law.

        Checking if the illegal thing has been done is often easier than checking if the regulated thing has been done correctly,

        pointedly incorrect. and thats my point that checking the illegal thing is the same thing as checking the regulated thing. but you assert there is some difference.