EU Forces Banks To Retain Share Of Split Risks

Law360, New York (May 6, 2009, 12:00 AM EDT) -- European Union legislators signed off Wednesday on new transparency and risk-management rules for the financial sector, including a mandate that lenders that repackage loans as securities hold on to a share of the original risk and a call for a clearinghouse to regulate credit default swaps.

The European Parliament approved the amended capital requirements directives by a vote of 454-106, with 25 lawmakers abstaining, after the legislature, the European Commission and the Council of Ministers reached an agreement on a common text for the law, which...
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