Fed's Kroszner on restoring confidence in MBS
Comprehensive and standardised loan-level data covering the entire pool of loans backing mortgage-backed securities (MBS) was needed so that the underlying credit quality could be analysed more easily, said Randall Kroszner, the governor of the Federal Reserve responsible for supervision.
Kroszner also said that the following fundamental changes were needed to recover investors' confidence in MBS:
the structures of cash flows from mortgage payments in the pool to the various tranches should be
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