Guillermo de la Dehesa has written a thoughtful piece in VoxEU regarding future possibilities in regulation.
He states: To avoid future crises
- all mortgage originators should be regulated,
- banks should have to retain their “equity” or first loss risk,
- securitizers should be more transparent and produce more standardized products
- the rating agencies should be more transparent and independent,
- Europe’s coordination failure among national supervisors should be fixed.
It’s a good article, worthy of a more thoughtful response than I can currently prepare. I’ll try to update over the weekend.
Update: Naked Capitalism has reported another essay.