attendees: akshat, alexis, m, eric, j, elizabeth
– we had a length conversation about which parts of an ABS issuer a banking entity should be allowed to have an ownership interest in.
– there was much debate over whether or not non-equity pieces constituted “ownership” and whether or not banks would ever participate with an ABS issuing entity if they couldn’t buy the super-senior tranches.
– it was also pointed out that the CDOs and CDO squared business is not in existence anymore.
– we discussed Question 251 that the regulators have asked, and whether or not the rule should not simply require the banking entity to disclose that it does not guarantee the fund. Rather, the rule should also explicitly state, as the statute does, that the banking entity cannot guarantee the fund.