Local view for "http://purl.org/linkedpolitics/eu/plenary/2015-10-07-Speech-3-534-000"
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"en.20151007.27.3-534-000"2
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"Mr President, the Commission package on the Capital Markets Union makes clear that securitisation is back on the agenda as a strategy for increasing investment in Europe – and, for those of us who are not yet ready to forgive and forget the financial crisis of 2008, this sets alarm bells ringing.
Securitisation is a typical example of the mystification and misleading language in which finance markets abound. Rather than offering security, it has historically been used as a technique for concealing risk. It is also likely to serve the inner circle of financiers and to divert investment from the businesses that make up the real economy. With securitisation, market traders created a dangerous game of ‘pass the parcel’ where nobody could be sure whose parcel contained the toxic assets. This gave value to worthless assets, but at great risk to the financial system. This is securitisation: an attempt to pretend that hiding risk is really reducing risk, when it is nothing of the sort.
As Greens, we will insist that safe securitisation means the loans on which it is based are sound, that it does not involve the tranching of assets with varying levels of risk, and that we do not allow the return of credit default swaps. Securitisation was central to the irresponsible and high-risk trading that led to the financial crisis. If we are to prevent such a crisis, with all its devastating consequences, from happening again we must not allow securitisation on the old model to infect our financial markets."@en1
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