Financial Times FT.com

IMF defends securitisation markets

ByChris Giles, Economics Editor

Published: September 21 2009 15:47 | Last updated: September 21 2009 15:47

Restarting securitisation markets is “critical” to a wider economic recovery, the International Monetary Fund claimed on Monday as it warned new regulatory proposals might kill the market.

The fund welcomed efforts to tame many of the pre-crisis excesses in securitisation markets, which have been blamed for allowing money to flow to households that had little chance of paying it back but signalled that the current proposals were too Draconian.

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