Regulatory Legislative and Legal

Moody's: FDIC Legislation Stance Disadvantages US Covered Bonds

". . . prepayment risk that traditional covered bond investors do not want"

In an update on the FDIC's stance regarding potential U.S. covered bond legislation, Moody's Investors Service expressed a view that if the FDIC prevails, such legislation "would not put U.S. covered bonds on a level playing field with their European counterparts."

Senate Hearing Highlights Disputes Over Covered Bond Legislation

Points of disagreement include repudiation power urged by FDIC

A hearing on covered bonds held by the U.S. Senate Committee on Banking, Housing & Urban Affairs (Sept. 15) highlighted some significant points of dispute between government officials and the financial industry.

SIFMA Again Stresses Support for Covered Bond Legislation

Summarizes testimony of Scott Stengel (Steering Committee)

The following was released by SIFMA (Sept. 15):

Garrett Testifies at Senate Hearing on Covered Bonds Legislation

"a purely private means of finance without government guarantees or subsidies"

The following was released (Sept. 15) by the Congressional office of U.S. Rep. Scott Garrett:

Global Covered Bond News Roundup - Week Ending August 6

A tap by Eurohypo . . . a planned auction in Denmark . . . and more

A Cypress bank issues covered bonds for collateral . . . A professor writes about U.S. covered bonds in the 19th century . . . Eurhypo taps €250 million . . . Caja Madrid to continue repurchases . . . and more

Moody's: Covered Bond Bill (H.R. 5823) Positive - But Shortcomings

Negatives include an amendment fragmenting regulatory oversight

The latest version of U.S. covered bond legislation (H.R. 5823) — which recently won a favorable vote from the House Financial Services Committee (HFSC) — offers both pluses and minuses, according to a comment published by Moody's Investor's Service (August 2).

Global Covered Bond News Roundup - Week Ending July 30

A special update on the prospects for covered bonds in Australia . . . and more

An Australian lawyer reports on efforts to gain approval for covered bond issuance there . . . a U.S. dollar tap in Canada and a Euro CB tap in France . . . plans for more covered bonds in Korea . . . a step forward for CB legislation in the U.S. . . . and more

House Committee Casts Favorable Vote for U.S. Covered Bond Bill

Next step could be vote by full House of Representatives

The latest version of comprehensive U.S. covered bond legislation, H.R. 5823, was reported out of a markup session by a voice vote of the House Financial Services Committee (HFSC) Wednesday evening (July 28).

Realtors Urge Barney Frank to Support U.S. Covered Bond Bill

"[I]t is imperative that all housing finance instruments . . . be utilized"

The National Association of Realtors® (NAR) has sent a letter to U.S. House Financial Services Committee (HFSC) Chairman Barney Frank (D-MA), urging him to support the revised version of the proposed U.S. Covered Bond Act of 2010 that was introduced in Congress July 22 as H.R. 5823.

Revised U.S. Covered Bond Bill - H.R. 5823 - Scheduled for Markup

Potentially significant step toward vote by full House of Representatives

A revised version of the proposed U.S. Covered Bond Act of 2010 — introduced July 22 in the House of Representatives as H.R. 5823 — has been scheduled for markup on July 27 by the House Financial Services Committee (HFSC).