Darrell Duffie on the Dorgan FinReg Amendment

Darrell Duffie:

Among other things, [the amendment:] means a big limitation on the entire
securitization market, since in many cases the loan default risk is
transferred into the structured credit product through a CDS. (This is
not to be confused with a synthetic CDO, which is much different, and
not such a big loss in my view.) So, lots of loans to ordinary
individual Americans (their credit card loans, home equity loans,
mortgages, and so on) and American operating...