Document Type

Article

Publication Date

2012

Keywords

Dodd-Frank Wall Street Reform Act, securitization, financial crisis, special-purpose vehicles, SPVs, special-purpose entities, SPEs

Subject Category

Banking and Finance | Law | Securities Law

Abstract

Securitization has been called into question because of its role in the recent financial crisis. Schwarcz examines the potential flaws in the securitization process and compare how the Dodd–Frank Act treats them. Although Dodd–Frank addresses one of the flaws, it underregulates or fails to regulate other flaws. It also overregulates by addressing aspects of securitization that are not flawed.