The Volokh Conspiracy - Treasury to require issuers to retain 5% of securitized loans.

CNBC is reporting that the US Treasury Department is proposing to require that issuers of securitized loans retain 5% of the security. Thus, they remain partly on the hook if they make bad loans and try to flip them to others.

At first glance, this seems like a good idea to me.

	[Jim Lindgren, June 15, 2009 at 11:35am] Trackbacks Treasury to require issuers to retain 5% of securitized loans. CNBC is reporting that the US Treasury Department is proposing to require that issuers of securitized loans retain 5% of the security. Thus, they remain partly on the hook if they make bad loans and try to flip them to others. At first glance, this seems like a good idea to me.