Rep. Scott Garrett (R-NJ) introduced the U.S. Covered Bond Act today, with support from Rep. Paul E. Kanjorski (D-PA) and Financial Services Committee Ranking Member Spencer Bachus (R-AL) as leading co-sponsors. This legislation, according to a press release from Garrett's office, aims to help facilitate a robust covered bond market in the U.S. to add liquidity and certainty to our nation's capital markets.
“As the U.S. continues to recover from the financial crisis, it is essential that Congress examines new and innovative ways to unthaw our locked credit markets and encourage private capital to confidently re-engage by turning cash now on the sidelines into active investments in our country’s future,” said Garrett, who is a ranking member of the House Financial Services Subcommittee on capital markets. “I believe that a robust U.S. covered bond market would offer numerous benefits to investors, consumers, and the broader financial sector, ensuring longer term liquidity that is more stable for U.S. credit markets.”