The Securities Industry and Financial Markets Association (SIFMA) expressed its approval of the Federal Deposit Insurance Corp.'s (FDIC) reported plan to securitize around $36 billion of failed bank assets. This is in an effort to support the restart of the securitization industry.
Today the SIFMA released the following statement from its President and CEO Tim Ryan regarding reports that the FDIC is working on a plan to package these assets.
“The FDIC’s move to package and sell loans through securitization is a positive step for the securitization markets and our economy," Ryan said. "These deals will provide a model for future private market issuances, could help kick-start nonconforming loan securitizations and secondary markets, tighten pricing for securities and strengthen the interests of real money investors. We look forward to continuing to work with the FDIC to ensure vibrant and stable securitization markets that help expand credit and lending to businesses and families during America’s economic recovery.”
