5 These inconsistencies with current law and practice in the G-M proposal do not themselves argue against its soundness. They do, however, underscore the degree to which the NFBs would require development of a new financial regulatory approach, as well as a restructuring of the ABS and repo markets.
More generally, the existence of costs or problems does not counsel the rejection of the proposal as such. In the face of very real flaws in the pre-crisis state of these markets, and the failure of some ABS markets to recover, even where it seems they could function sensibly, there is a very good case for a policy initiative.