Two major Wall Street trade groups have criticized a plan floated last month by U.S. regulators to force issuers to disclose more sensitive loan-level data to investors, saying it could make companies more vulnerable to lawsuits.
In a joint letter to the U.S. Securities and Exchange Commission late Friday, the two groups asked the regulator to scrap its asset-backed securities (ABS) draft plan and start fresh.
“We … urge the commission to re-propose the ABS releases, including the portion relating to asset-level disclosure,” wrote the Securities Industry and Financial Markets Association and the Financial Services Roundtable.
via Wall Street groups pan SEC’s asset-backed securities draft plan | Reuters.
