SIFMA today issued the following statement from SIFMA President and CEO Tim Ryan, on the risk retention study issued by the Financial Stability Oversight Council:
“SIFMA supports risk retention measures which are calibrated to the risk profile and structural features of various asset classes. With any scenario, developing and implementing risk retention standards requires prudent analysis. SIFMA believes it is essential that regulators perform business or financial modeling that would clarify the effect weighting a given transaction with five percent retention would have on lending and financial markets. We are pleased that Treasury took steps toward this approach in this study that was mandated by the Dodd-Frank Act.
“We urge regulators to ensure any proposed policies serve to align the interests of stakeholders but do not have an unnecessarily negative impact on the availability of affordable credit to consumers and small businesses and, therefore, the overall economy, before those policies become practice.”