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Mike Osnato Quoted in The Wall Street Journal on Synthetic Securitization for European Financial Entities

05.24.18

Litigation Partner Mike Osnato was quoted in The Wall Street Journal in an article titled “Taxpayers Are on the Hook in Banks’ Financial Engineering,” which discussed The European Investment Fund (EIF) and certain European Banks’ plan to engage in synthetic securitization to shift risk for regulatory capital purposes, despite potential to expose taxpayers to bank losses. The EIF noted synthetic securitization would help boost lending to small businesses and help them compete directly with other European banks. Critics of the plan argue that shift in risk would make the financial entities seem healthier to taxpayers than they actually are.

To read the full article, please click here (subscription required).