Amid the swathe of proposed rules and regulations that are likely to apply to banks, financial institutions, rating agencies and others in the wake of the financial crisis, there are a significant number of new rules relating to capital adequacy treatment for securitisation transactions.
Although widely dubbed Basel III, the proposed rules do not really constitute a new regime so much as a series of amendments to the existing Basel II framework. Like a bad Hollywood sequel, the danger is that Basel III will be longer, more involved and less thought through than the original (and probably worse received by its target audience).
