Regulators said they envisage new specific treatment for resecuritizations, and expect an interim treatment until banks are fully integrated to the new Basel accord.

These changes in the Basel II landscape will see increased capital requirements for resecuritizations and conduit facilities. This is a result of the consensus that more capitalization is needed under the new regime, said regulators who spoke on a panel at the recent Information Management Network's second annual European CLO, Structured Credit Products and Credit Derivatives Summit.

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