As I noted earlier, the Basel Committee has announced improvements to bank capital standards for securitizationrelated exposures, thereby better aligning these standards with the risks presented by securitizations.
Improved transparency regarding the individual loans backing a securitization, as well as regarding the originators of such loans, also is needed to reduce the opacity that has impeded effective discipline in the market for asset-backed securities (ABS) and encouraged undue reliance on credit rating agencies.